Regulator research reveals crypto investors’ awareness

New research undertaken by the Financial Conduct Authority (FCA) has uncovered that a vast majority of potential investors are unaware of its warnings of the risks associated with buying cryptocurrencies.

The recent study conducted by the regulator also found that the understanding of cryptocurrency currently held by investors in the UK has dropped significantly, as digital assets continue to increase in popularity.

The FCA commented:

“Despite more people hearing about cryptocurrencies, the overall level of understanding has declined. This may risk consumers getting involved in cryptocurrencies without a clear understanding of them.”

UK consumers seeking investment advice in Chester and other cities can look to wealth managers for guidance. Able to offer an expert eye on investments, they can provide fresh insights into existing portfolios and offer unbiased council on potential assets.

The research showed that less than one in every 10 people potentially purchasing cryptocurrency have heard the FCA’s warnings on the dangers of investing their earnings in digital assets. The statistics also uncovered that the number of adult investors buying cryptocurrencies has spiked sharply. Recorded figures for January this year displayed an increase of around half a million investors in digital coin since the same time in 2020.

While the cryptocurrency market has seen increased interest, the study showed that UK investors were less aware than ever, with 30 per cent of respondents unable to correctly identify an accurate definition of cryptocurrency. This statistic indicated a four per cent drop in understanding compared to levels recorded last year.

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