FCA Publishes Findings from Consumer Research on Crypto-Assets
FCA published results of the research on UK consumer attitudes to, and awareness of, crypto-assets, such as Bitcoin and Ether, in the UK. The research includes a national survey and qualitative interviews with UK consumers. Out of the pieces of the published research, one report by the research firm Revealing Reality explores the attitudes, understanding, and motivations behind the consumer decisions to purchase and use different crypto-assets. The second report is by the research firm Kantar TNS and it looks at the consumer awareness, understanding, and purchasing habits related to crypto-assets.
The qualitative research indicated some potential harm, including that many consumers may not fully understand what they are purchasing. However, despite the general poor understanding of crypto assets among UK consumers, findings from the survey suggest that the overall scale of harm may not be as high as previously thought. Seventy-three percent of the surveyed UK consumers do not know what a crypto currency is or are unable to define it. FCA estimates that only 3% of consumers surveyed had ever bought crypto-assets.
FCA has previously warned that cryptoassets, including Bitcoin, are highly volatile and risky. Many tokens (including Bitcoin and "cryptocurrency" equivalents) are not currently regulated in the UK. This means that the transfer, purchase, and sale of such tokens currently fall outside the regulatory remit. Thus, it is unlikely that consumers will be entitled to register complaints with the Financial Ombudsman Service or protected by the Financial Services Compensation Scheme, if things go wrong. FCA is working with the Government and BoE, as part of a UK Cryptoassets Taskforce, to understand and address the harms from crypto-assets and encourage innovation in the interests of consumers. FCA is also consulting on the guidance to clarify the types of crypto-assets that fall within the existing regulatory perimeter. Later this year, FCA is expected to consult on banning the sale of certain crypto-asset derivatives to retail investors. HM Treasury is also exploring legislative change to potentially broaden the regulatory remit of FCA to bring in further types of crypto-assets.
Related Links
- Press Release
- Crypto-Assets: Ownership and Attitudes (PDF)
- How and Why Consumers Buy Crypto-Assets (PDF)
Keywords: Europe, UK, Banking, Securities, Crypto-Assets, Regtech, Consumer Research, Distributed Ledger Technology, FCA
Previous Article
BCBS Publishes Basel III Monitoring Updates in January 2020Related Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.