Cryptoassets in Great Britain and FCA Research

In a recently published research, the FCA has outlined its vision regarding behavioral patterns in the cryptocurrency market. While targeting mostly high-profile investors considering registering a cryptocurrency company in Great Britain, the document does contain some import insights that may prove to be equally interesting to members of the general public & major cryptoasset traders.

What Does It Mean?

Based on an FCA-commissioned quantitative study, the research sheds light on certain consumer behavior patterns in the cryptocurrency market, as well as potential risks involved in cryptocurrency activities in Great Britain. It should be kept in mind that the research is part of a much broader project implemented by an FCA’s task force.

Some of the key takeaways from the research are as follows:

• though the UK population is becoming increasingly aware of cryptocurrencies, the share of people owning cryptocurrencies remains extremely low (at around 4%);
• the majority of consumers are conscious of the perils linked to the lack of protection & extreme instability of cryptocurrencies; however, the same can’t be said about blockchain technology;
• consumers owning cryptocurrencies display a high level of technical competence; that is particularly true of their cryptocurrency activities in Great Britain;
• the majority of owners of cryptocurrencies seem to regard cryptoassets a speculative instrument, and not a payment or investment.

It should also be noted that the FCA was involved in consulting on the imposition of a ban on the sale of some derivatives of cryptocurrency derivatives to retail investors. The results of that consultation haven’t yet been released.