UK Crypto Market Missing Out on 13m New Customers As 54% of Adults Distrust Digital Assets— New Research Finds
- Over half (54%) of UK adults distrust cryptocurrencies
- Only 12% of Cryptoasset firms that applied for registration under money laundering regulations were approved
- Over half (53%) of UK adults admit they still do not know anything about cryptocurrencies
- Crypto adoption has increased 650% in 3 years: Bankless Times research
The below article is written based on a TMT press release:
London, 12 May 2022: The UK’s crypto market is missing out on 13m new customers due to its perceived lack of security, meaning potential investors continue to shun these assets, according to research from TMT Analysis, the mobile digital identity company.
Almost half of UK consumers (45%) believe that crypto will never become mainstream unless security and regulation are improved.
Bankless Times research revealed that there were about 1.5 million people who owned crypto-assets in the UK in 2018. Adoption increased drastically to about 9.8m in 2021. The numbers represent a staggering 650% increase in crypto adoption.
Figures provided by the FCA exclusively to TMT Analysis reveal that only 12% of Cryptoasset firms that applied for registration under money laundering regulations were approved in the first 12 months since FCA authorisation became a requirement*.
There remains considerable scepticism amongst potential investors which is holding back market growth:
54% of UK adults distrust cryptocurrencies as they don’t believe the security processes in place are robust enough to protect investors
63% of UK adults aged over 55 are concerned over the security measures of crypto exchanges, compared to under half (42%) of 18-34-year-olds.
53% of UK adults admit they still do not know anything about cryptocurrencies, despite the UK crypto market hitting $170bn**.
Crypto-crime hit a record high last year, rising 79% from $7.8bn to $14bn**,
41% of survey respondents think that there is more fraud in the crypto industry than anywhere else in financial services— the figure rises to almost half of men (46%) and over a third (36%) of women;
“Exchanges and providers need to ensure that they implement more stringent security and anti-fraud processes to attract investors and allow crypto to fulfil its potential as a truly viable, global alternative to the current monetary system. Changing consumer perceptions over crypto security is the single biggest barrier to mass adoption," says Fergal Parkinson, Director of TMT Analysis.
Unfortunately, many potential investors still view crypto as having a ‘wild west’ reputation. Concerns over security appear to be the major factor preventing potential investors from fully embracing crypto – additional layers of security are vital to give people the confidence to make an investment and continue to grow the market. Measures such as number verification are a simple yet vital step in fighting fraud and boosting consumer confidence in the marketFergal Parkinson, Director of TMT Analysis
TMT Analysis believes the longevity of a mobile number with an individual makes it a powerful element of our digital identity; organisations can obtain rich and actionable mobile numbering data to strengthen and validate the user verification process, reduce fake accounts, give risk insights, improve conversations, and determine the optimal channel for message delivery.
"Appetite for alternative investments remains high but crypto businesses need to ensure they respond to consumers’ consumer concerns to boost take-up. Cryptos have the potential to transform the future of money and allow people to have greater control over their finances but currently, too many potential investors remain wary of embracing the crypto revolution.”
Methodology: Opinium research of 2,001 UK adults weighted to be nationally representative. The research was undertaken between 1st and 4th March 2022.
* According to FCA figures up to 10th January 2022.
** According to figures from Chainalysis.