From financemagnates by Tareq Sikder

The Financial Conduct Authority (FCA) has released new research on consumer attitudes towards crypto in the UK. The findings show that 12% of UK adults now own crypto, an increase from 10% in previous reports. Awareness of crypto also rose from 91% to 93%. The average value of crypto held by individuals grew from £1,595 to £1,842.

Respondents reported that family and friends were the main sources of information for those who had not purchased crypto. Only 10% of participants said they did not conduct any research before buying.

FCA Complaint Belief, Crypto Risks

Around one third of people believed they could file a complaint with the FCA if something went wrong, seeking recourse or financial protection. However, crypto remains largely unregulated in the UK and carries high risks. In the event of a problem, there is no guarantee of protection, and individuals should be prepared to lose their money.

“Our research results highlight the need for clear regulation that supports a safe, competitive, and sustainable crypto sector in the UK. We want to develop a sector that embraces innovation and is underpinned by market integrity and consumer trust,”Matthew Long, Director of Payments and Digital Assets at the FCA, said.

“We’re committed to working closely with the Government, international partners, industry and consumers to help us get the future rules right,” he added.

Crypto Regulation Roadmap Published

According to the FCA, its research also aligns with its efforts to develop a regulatory framework for crypto. The FCA has published a roadmap, outlining key dates for the introduction of the UK’s crypto regime. The roadmap includes focused consultations aimed at making policy development more transparent and flexible, encouraging public engagement.

The FCA has taken steps to address illegal cryptoasset promotions in the UK, despite its limited regulatory scope. Since the implementation of new legislation on 8 October 2023, the FCA has been responsible for overseeing cryptoasset promotions. In the first year, it issued 1702 alerts, removed over 900 scam websites, and took down more than 50 apps.

To assist payment service providers, the FCA plans to publish a webpage outlining the risks for firms offering services to unregistered crypto companies. It will also highlight positive actions firms can take to address these risks.

Launching InvestSmart Campaign

The FCA has continued efforts to educate consumers about the dangers of high-risk investments like crypto, including the ScamSmart campaign and quicker warning systems. The £11 million InvestSmart campaign, launched on social media platforms, aims to help consumers make informed investment choices.

“There are steps that can be taken to attempt to trace and recover funds and crypto assets, including by way of urgent interim remedies such as disclosure orders and freezing injunctions, but there is no failsafe or guaranteed route to recovery,” Chris Recker, a Legal Director at law firm Kingsley Napley specialising in digital assets, commented.

“A particular challenge can be the cost v benefit analysis that a victim will inevitably need to undertake when deciding whether or not to invest further money in advancing a claim. Some of the barriers can be the quantum of the claim and the potential uncertainty around recovery.”