The United Kingdom's Financial Conduct Dominance estimates that roughly two.6 meg U.M. consumers have bought cryptocurrency "at some indicate."

On June 30, the FCA published the results of its latest enquiry into how consumers interact with crypto markets in the U.K. It found that 1.9 one thousand thousand people — three.86% of the general adult population (18+) — currently own cryptocurrency.

This presents what the FCA considers to be a "statistically significant increase," up from 3% in the last FCA consumer research written report in 2022.

The increase brings the total number of U.Thousand. consumers who accept ever held cryptocurrencies at any point upwards from ane.5 one thousand thousand to its current estimated figure of ii.6 meg.

Bated from the marked uptick in crypto owners, awareness of the industry appears to be on the rise — 73% of adults take heard of cryptocurrencies, equally compared with 42% last year.

Further breakdown of the watchdog's findings

The FCA's research indicates that 75% of the one.9 meg currently holding crypto hold under £1,000 ($1,229) worth. 83% of crypto owners purchase their assets via non-U.K. based exchanges.

In full general, holders' level of technical cognition and understanding of the potential risks associated with lack of protections and nugget volatility is high, according to the FCA.

One exception is that 11% of electric current and former crypto holders mistakenly believe their crypto assets are covered by consumer protections — amounting to roughly 300,000 people.

The FCA believes that this places these consumers at take a chance of fiscal harm. Yet information technology also constitute, in parallel, that the most popular reason for U.One thousand. consumers to buy crypto was "as a take chances that could make or lose money," with full awareness of the volatility in crypto markets.

Another key finding in the research is the apparent prevalence of crypto-related ads and their influence on consumer decisions.

45% of current and former holders said they had seen a crypto-related advertising, of which 35% (400,000 people) said it made them more than likely to purchase crypto. Overall, sixteen% of current and sometime crypto-owners said they had been influenced by advertizement.

Summary of FCA research findings, Dec. 2022

Summary of FCA research findings, December. 2022. Source: FCA

The U.K. crypto climate

As reported earlier this week, the FCA has just released a detailed statement urging all local crypto business operators to register with the authority by today. Its latest registration requirements come with a serial of specific compliance measures, primarily in the areas of Anti-Money Laundering and Counter-Terrorism Financing.

In its announcement today, the FCA noted it is working with the government and Bank of England as part of the U.K. Cryptoassets Taskforce to tackle crypto-related consumer risks while encouraging innovation.

The U.G.'due south regime budget in March 2022 indicated the government plans to consult on measures to potentially bring sure crypto assets into the telescopic of financial promotions regulation.