UK’s FCA releases its cryptocurrency market report

01 Jul 2020

Interest in cryptocurrencies, such as Bitcoin, is increasing in the UK, according to the country’s regulator, the Financial Conduct Authority (FCA), which on Tuesday published a report on attitudes to digital assets.

“We commissioned quantitative research among a sample of cryptoasset owners, to ensure our understanding of consumer behaviour and areas of potential harm was accurate,” said the FCA on their website.

“This research builds on previously gained insight into how consumers interact with the cryptoassets market. It gives market sizing data, insight into consumer profiles and attitudes towards cryptoassets in the UK that is otherwise unavailable.”

The report reveals that the number of those who dealt with them in one way or another amounts to 2,6 million people, which is 1,1 million more than last year. 

“Such a significant increase proves the development of the cryptocurrency market in the country,” said Coin Idol.

The FCA research also highlighted that most cryptocurrency users came to the market by advertising, which denotes a high level of trust to advertising in general. 

In its analysis of the report, Coin Idol noted: “Considering the surge in various scam projects luring people to trick them out of their money, this might also prove the need for regulations in order to protect people.”

This is not the first time the UK’s financial watchdog has delved into crypto. In 2018, it carried out a review into the sector, which at the time deVere boss Nigel Green described as the “far-reaching and the most influential in recent times,” for two main reasons.

“First, because of the number of people who will be directly affected. The cryptocurrency market has grown considerably in recent years. This level of growth is forecast to rocket further and more quickly over the next 10 years, as more and more investors pile into the likes of Bitcoin, Ethereum, Ripple, Litecoin and Dash, and as adoption by businesses and organisations further increases,” he affirmed.

And second, because the FCA is “one of the most influential and respected financial regulators in the world.” Therefore, he went on to say, “it can be expected to help define the thinking and policies of regulators across the globe, most of whom in the major economies are not carefully scrutinising the crypto space.”

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