On June 17, the Financial Conduct Authority released its fourth consumer research publication on cryptoassets. The research results showed increased awareness of cryptocurrencies reaching 78% of adults, yet with fewer respondents (71%) understanding what they are and only 58% agreeing to “hav[ing] a good understanding of how cryptocurrencies and the underlying technology works”.
Consumers in cryptocurrencies are taking on investment risks that may harm them:
15% of respondents have income lower than 20k
12% of respondents believe their cryptocurrency investments have financial protection
14% of respondents used borrowing for cryptocurrency purchases
10% of respondents are unable to identify the definition of cryptocurrency
The results of this study provide insight into the attitudes and patterns of usage of cryptocurrencies to inform on the potential harms and benefits to consumers.