The FCA has also found that of the 1.9 million that still hold their cryptoassets – such as Bitcoin, Ripple or Ether – half have more than £260.

The research forms part of the FCA’s work alongside the Government and Bank of England to understand market size, consumer profiles and attitudes towards cryptoassets.

The survey was conducted online via YouGov with 2,681 participants questioned. 

The survey found that: 

• The majority of cryptoasset owners are generally knowledgeable about the product, are aware of the lack of regulatory protection afforded and understand the risk of price volatility
• An estimated 300,000 cryptoasset owners believe they have protection, which leaves them at potential risk of financial harm
• Adverts play a key role in influencing cryptoasset consumers’ decisions, with more than a third of respondents saying an advert made them more likely to purchase cryptoassets
• Of those who purchase cryptoassets, 83% do so through non-UK based exchanges.

Sheldon Mills, the FCA’s interim executive director of strategy and competition, said: “This FCA report reveals the increasing popularity of cryptoassets among the UK consumer population and underlines the importance of our work to gain a deeper understanding of this market and how people interact with these assets. Cryptoassets present risks and opportunities for consumers and we hope these insights will help inform the policy debate in the UK and internationally as the use of these assets continue to grow.”