The UK’s top financial regulator has released new data showing a surge in crypto investments, and a rise in awareness of digital currency, as it sets out on its path to a full regulatory regime.
The regulator said its research found that, in the UK, awareness of crypto also rose from 91% to 93% and the average value of crypto held by people increased from £1,595 to £1,842.
Respondents told the FCA that information from family and friends was the most common source of information for those who had never bought crypto. Still, one in 10 people say they did not do any research before buying crypto.
“Our research results highlight the need for clear regulation that supports a safe, competitive, and sustainable crypto sector in the UK,” said Matthew Long, director of payments and digital assets at the FCA. “We want to develop a sector that embraces innovation and is underpinned by market integrity and consumer trust.”
Around a third of people said they believed they could raise a complaint with the FCA if something went wrong and were seeking recourse or financial protection. Currently, crypto remains largely unregulated in the UK and high-risk. If something goes wrong, it is unlikely you will be protected so you should be prepared to lose all your money.
The new research comes amid a rally in cryptocurrency prices. The price of bitcoin (BTC-USD) has headed to new all-time highs off the back of hopes of a more lenient regulatory regime in the US once president-elect Donald Trump takes office in January. Trump has pledged on the campaign trail to create a national bitcoin reserve as well as sack SEC boss Gary Gensler, who is seen as vexatious to the industry.
Bitcoin is currently flirting with the elusive $100,000 mark.
As coin prices surge, and interest in cryptoassets ramps up again, the FCA has begun its plan to regulate the industry more thoroughly. Industry sources have been calling for more clarity on how digital assets will be viewed in Britain. The roadmap sets out a series of focused consultations. The FCA says this approach aims to make policy development transparent and help people engage by making the process more manageable and flexible for all.
