The Financial Conduct Authority (FCA) has recently reported that some 2.3 million adults hold cryptoassets in the UK, a rise from 1.9 million people last year. However, the regulator is warning that people’s understanding of cryptocurrency appears to have decreased, according to findings.
What did the FCA report find?
Consumer research published on June 17 by the FCA has found interest in cryptocurrency has increased in the UK over the past year.
More than half of crypto users said they have had a positive experience with cryptocurrency so far and are likely to buy more, rising from 41 percent to 53 percent.
According to the findings, more people (78 percent) had heard of cryptocurrency, a slight increase from the 73 percent recorded in last year’s findings.
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Commenting on the FCA’s findings, Anthony Morrow, co-founder of low cost online financial advice service OpenMoney, said: “It’s incredibly worrying that a growing number of people see cryptocurrency as an alternative to mainstream investments rather than an outright gamble.
“Cryptocurrencies are incredibly high risk, with massive fluctuations in value, making it very difficult for anyone to make money from them without a good deal of luck.
“If you are considering buying a cryptocurrency, make sure you are comfortable with the level of risk you are taking – remember that you could end up losing most, if not all, of your money.
“I wouldn’t recommend it as a serious investment strategy and certainly not as an alternative to mainstream investments.
“The fact that consumers who are persuaded by adverts are much more likely to regret their purchase, highlights the dangers of promoting these unregulated investments to retail investors through social media influencers, celebrities and even football clubs without explaining the risk involved.
“The regulation needs to catch up quickly to prevent more people from suffering real financial harm.”
The information in this article does not equate to financial advice. Anyone considering investing in cryptocurrency should understand the risks involved.