The UK’s top financial regulator has released new data showing a surge in crypto investment and increased awareness of digital currency, as it embarks on the path to a comprehensive regulatory regime.
The regulator said its research found that in the UK, crypto awareness also increased from 91% to 93% and the average value of cryptocurrencies 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 purchased crypto. Yet one in 10 people say they did no research before buying crypto.
“Our research findings 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 based on market integrity and consumer trust.
Around a third of people said they thought they could complain to the FCA if something went wrong and were looking for recourse or financial protection. Currently, crypto remains largely unregulated in the UK and is high risk. If something goes wrong, you are unlikely to be protected, so you should be prepared to lose all your money.
The new research comes amid a surge in cryptocurrency prices. The price of bitcoin (BTC-USD) has reached new all-time highs on hopes of a more lenient regulatory regime in the United States once President-elect Donald Trump takes office in January. Trump pledged during the election campaign to create a national bitcoin reserve and to fire SEC boss Gary Gensler, considered vexatious to the industry.
Bitcoin is currently flirting with the elusive $100,000 mark.
As coin prices skyrocket and interest in cryptoassets increases again, the FCA has launched its plan to regulate the sector more thoroughly. Industry sources have called for more clarity on how digital assets will be viewed in Britain. The roadmap provides for a series of targeted consultations. The FCA says this approach aims to make policymaking transparent and help people get involved by making the process more manageable and flexible for everyone.
