The United Kingdom’s Financial Conduct Authority (FCA) has recently published its Cryptoasset Consumer Research Note for 2021, with findings that reveal an increase of crypto owners who now regularly monitor the value of their holdings on a daily basis.
According to the study, the increase in crypto owners monitoring the value of their holdings has more than doubled between 2020 and 2021, with the previous year increasing from 13% to 29%. The study also provides that the proportion of people who admit to have never checked their crypto stash remained at 12%.
“Generally the findings of the FCA’s Cryptoasset Consumer Research Note for 2021 show that awareness and ownership of cryptocurrencies is on the rise, despite previous strong warnings from the FCA about their risks and speculative nature. It seems that public confidence in cryptocurrencies is growing, as the report suggests that investors are less likely to see them as a gamble, and more of a complimentary investment alongside mainstream assets.” shared Neil Williams, white-collar crime lawyer at Gherson Solicitors.
“The fact that most of those surveyed use an exchange for dealing with their investments highlight the pressing need for the regulatory approval process for companies who deal with cryptoassets to be resolved, and quickly.” Williams stated.
The FCA’s publication of the research follows from the context of the recent surge in demand for cryptocurrencies and blockchain-based digital assets. According to the FCA, the rise in interest for Bitcoin is “reflected in other cryptoassets,” to the extent that the FCA thinks that “this recent momentum influenced consumer responses to [the FCA’s] research questions.”
Prior to the publication, the FCA has also recently announced an extension to the Temporary Registration Regime, enabling a significant number of businesses to continue trading with more time as they await regulatory approval from the agency. At the moment, only 5 firms have been approved, while 150 more are waiting, highlighting a regulatory challenge for the agency.
“There have been arguments put forward on both sides as to the reasons for the delay, either firms aren’t reaching the stringent standards required for approval, or the bar has been unfairly set too high,” Williams opines.
“Whatever the reasons, the survey confirms that the public are embracing cryptocurrencies in ever greater numbers, which increases the need for regulatory protection. All involved will need to up their game to provide a degree of certainty in what is a volatile, yet vibrant market” added the lawyer.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.