New UK FCA Survey Reveals Nearly 3 Out of 4 British Consumers Don’t Know What Crypto Assets Are
There is plenty of space for cryptos to grow and it looks like this space is pretty big in the United Kingdom. According to a recent survey conducted by the Financial Conduct Authority (FCA), 73% of the UK consumers are not sure that a cryptocurrency is or have a hard time defining it.
This new piece of research, which was unveiled today, March 7, indicates that the people who are most aware of cryptos tend to be men aged between 20 and 44, not too young not to be concerned with money and not too old to skeptical of it, either. The survey polled 2,132 consumers from the UK and was made in a partnership with Kantar TNS, a market research company from London.
Also, according to the survey, only a total of 3% of the British people who participated in the survey actually bought cryptos in their life. The people who purchased them generally spent under $200 GBP ($263 USD). The most crypto, as expected, was Bitcoin (BTC), as 50% of the people bought it. 34% bought Ethereum (ETH) and the others acquired other cryptos.
Another survey, this one a “qualitative research” was conducted by the FCA together with Revealing Reality, a London-based research company. In this research, the FCA found out that not a lot of people understood what they were purchasing. Some wanted to buy a “whole coin”, for instance, not understanding that they are not real coins and that they can be bought in fractions as well.
People were mostly interested in getting rich quickly when they bought cryptos. They cited friends and people on social media who motivated them to buy these crypto assets.
The executive director of strategy and competition at the FCA, Christopher Woolard, has recently affirmed that the results of the surveys show that they are not very well understood by people and that almost no one is buying them. Therefore, cryptos’ impacts, both good and bad, are hardly having any large impact on society at the moment.
He affirmed, however, that cryptos are very complex and volatile products and that the investors should be ready to lose all their money if they invest in them. With some cryptos losing over 90% of their value in 2018, that sounds like good advice.
The study also warned the users against using unregistered crypto brokerage companies as they are often scams that will take the money from the clients and leave.
According to the statement which was made during the announcement of the survey, the FCA will consult on banning several crypto derivatives this year, something that the agency is considering since last year. The entity has also promised to create regulatory guidelines for the crypto space.