- More than 1.1 million businesses backed by £46bn through COVID-19 lending schemes
- New report urges banks to support just transition to a sustainable and inclusive economy in wake of pandemic
- Banking and Finance industry welcomes recommendations for "just transition" to net-zero carbon emissions
- The Investment Implications of Climate Risk– an investment manager’s view
- Z/Yen launches first edition of the Smart Centres Index (SCI 1)-London leads but US dominates The Top Ten
- Mastercard launches the FinTech Express program to support the rapid development of European start-ups
- Auriga opens its first offices in Spain and Mexico expired
- Monese partners with Paysafe to bridge the gap between cash and digital banking expired
- SIA and CRIF sign strategic partnership agreement to offer advanced Open Banking services and applications in Italy and Europe. expired
- B-North partners with Wiserfunding for SME credit risk assessment expired
- Stamp duty holiday boost for housing market, but are products available for borrowers to take advantage? asks Moneyfacts expired
- SMEs in corrupt countries discouraged from applying for business loans, says new research expired
30th June 2020
FCA research reveals 1.1million spike in cryptoasset buyers
An estimated 2.6 million UK consumers have bought cryptoassets at some point, new Financial onduct Authority(FCA) research reveals.
The number marks a 1.1 million increase since the FCA completed a face-to-face survey on the same topic last year. Of the 1.9 million that still hold their cryptoassets–such as Bitcoin, Ripple or Ether–half have more than £260.
The research forms part of the FCA’s work alongside the Government and Bank of England to understand market size, consumer profiles and attitudes towards cryptoassets.
Amongst the other key findings of the study, which was conducted online by YouGov and saw a total of 2,681 participants questioned, were that:
-The majority of cryptoasset owners are generally knowledgeable about the product, are aware of the lack of regulatory protection afforded and understand the risk of price volatility;
-An estimated 300,000 cryptoasset owners believe they have protection, which leaves them at potential risk of financial harm;
-Adverts play a key role in influencing cryptoasset consumers’ decisions, with more than a third of respondents saying an advert made them more likely to purchase cryptoassets;
-Of those who purchase cryptoassets, 83% do so through non-UK based exchanges.
The FCA’s Interim Executive Director of Strategy and Competition, Sheldon Mills, comments "This FCA report reveals the increasing popularity of cryptoassets among the UK consumer population and underlines the importance of our work to gain a deeper understanding of this market and how people interact with these assets.
Cryptoassets present risks and opportunities for consumers and we hope these insights will help inform the policy debate in the UK and internationally as the use of these assets continue to grow."
The FCA has previously warned that cryptoassets are highly volatile and risky. Many are not currently regulated in the UK. This means that the transfer, purchase and sale of such tokens currently fall outside our regulatory remit, leaving customers unable to make complaints to the Financial Ombudsman Service or seek protection from the Financial Services Compensation Scheme.
The FCA is working with the Government and Bank of England, as part of a UK Cryptoassets Taskforce, to understand and address the harms from cryptoassets whilst encouraging innovation in the interests of consumers.
In its March 2020 budget, the Government said it intends to consult on measures to bring certain cryptoassets into scope of financial promotions regulation.
A policy statement is due this year following a consultation on banning the sale of certain cryptoasset derivatives to retail investors.