The Financial Conduct Authority (FCA) of the United Kingdom recently released its Cryptoasset Consumer Research Note for 2021, revealing that the number of crypto owners who frequently monitor the value of their assets on a daily basis has increased.
As per the research, the number of cryptocurrency holders watching the value of their assets more than doubled from 2020 to 2021, jumping from 13% to 29% the prior year. The percentage of those who never check their cryptocurrency holdings stayed at 12%, according to the survey.
“Generally the findings of the FCA’s Cryptoasset Consumer Research Note for 2021 show that awareness and ownership of cryptocurrencies is on the rise, despite previous strong warnings from the FCA about their risks and speculative nature. It seems that public confidence in cryptocurrencies is growing, as the report suggests that investors are less likely to see them as a gamble, and more of a complimentary investment alongside mainstream assets.” stated Neil Williams, white-collar crime attorney at Gherson Solicitors.
“The fact that most of those surveyed use an exchange for dealing with their investments highlight the pressing need for the regulatory approval process for companies who deal with cryptoassets to be resolved, and quickly.” Williams noted.
The report was published by the FCA in light of the current rise in demand for digital currencies and blockchain-based digital assets. The FCA believes that the surge in the excitement in Bitcoin is witnessed in other cryptocurrencies and that the latest surge affected consumer responses to the study questions.
Before publishing, the FCA confirmed an extension to the Temporary Registration Regime, allowing a large number of firms to keep trading for a longer period of time while awaiting legal permission from the government. Only 5 businesses have been licensed thus far, with 150 more on the way, indicating a legal problem for the government.
“There have been arguments put forward on both sides as to the reasons for the delay, either firms aren’t reaching the stringent standards required for approval, or the bar has been unfairly set too high,” Williams noted.
“Whatever the reasons, the survey confirms that the public are embracing cryptocurrencies in ever greater numbers, which increases the need for regulatory protection. All involved will need to up their game to provide a degree of certainty in what is a volatile, yet vibrant market” stated the lawyer.