Research Note Cryptoasset Consumer Research 2023 Wave4

Financial Conduct Authority
Research Note
8 June 2023
Research Note: Cryptoassets

consumer research 2023
(Wave 4)
Mercy Aju and Tim Burrell
Public
Research Note
Research Note: Cryptoassets consumer research 2023 (Wave 4)
FCA research notes in financial

regulation
The FCA research notes

The FCA is committed to encouraging debate on all aspects of financial regulation and to
creating rigorous evidence to support its decision-making. To facilitate this, we publish a
series of Research Notes, extending across economics and other disciplines.
The main factor in accepting papers is that they should make substantial contributions to
knowledge and understanding of financial regulation. If you want to contribute to this
series or comment on these papers, please contact Karen Croxson
(karen.croxson@fca.org.uk).
Disclaimer
Research notes contribute to the work of the FCA by providing rigorous research results
and stimulating debate. While they may not necessarily represent the position of the
FCA, they are one source of evidence that the FCA may use while discharging its
functions and to inform its views. The FCA endeavours to ensure that research outputs
are correct, through checks including independent referee reports, but the nature of such
research and choice of research methods is a matter for the authors using their expert
judgement. We thank YouGov for their survey methodology and findings used in this
research note. Any errors or omissions in the discussion of the survey findings are
attributable to the research note authors.
Authors
Mercy Aju, Payments and Digital Assets.
Tim Burrell, Cross-Cutting Response, Partnerships and Research Department.
All our publications are available to download from www.fca.org.uk. If you would like to
receive this paper in an alternative format, please call 020 7066 9644 or email
publications_graphics@fca.org.uk or write to Editorial and Digital Department, Financial
Conduct Authority, 12 Endeavour Square, London E20 1JN.
Public 8 June 2023 1

Research Note
Contents
Notice 3
Research Context 4
Executive summary 5
1 Research design 7
Equality and diversity considerations 8
Survey Limitations 8
Statistically significant differences 9
2 Recent Developments 10
3 Overview 12
Purpose 12
Key findings 12
4 Results 14
Public awareness 14
Ownership and value 23
Experience of owning cryptoasset and areas of potential harm 37
Attitudes to cryptoassets 43
Stablecoins 48
Conclusion 52

Research Note
Notice
This report contains independent quantitative research which shows that awareness and
ownership of cryptoassets are increasing in the United Kingdom. Cryptoassets are high
risk and anyone who looks to purchase them should note that they are predominantly
outside the FCA’s current regulatory perimeter and there is unlikely to be any protection
if something goes wrong. Anyone who purchases cryptoassets should be prepared to
lose all their money.
As set out in this research note, the Government has set out plans for further regulation
of cryptoassets. This includes:
• (i) bringing certain qualifying cryptoassets into the scope of the Financial Services and
Markets Act 200 (Financial Promotion) Order 2005;
• (ii) regulating fiat-backed stablecoins which may be used for payments; and
• (iii) a consultation on a wider regulatory regime for cryptoassets. This proposes new
regulations for many cryptoasset activities.
The FCA will continue to work with Government, international counterparts, industry and
others to develop a future regulatory framework for cryptoassets.
As set out in the 1 February 2023 HMT consultation, even when the regime as currently
proposed is finalised it will not achieve the outcome of offering market integrity or
protecting consumers to the same degree as in traditional markets for financial
instruments. This is due to the structure of the cryptoasset market and in particular the
inherently cross-border, fragmented nature of the market, the pseudonymity of wallets
and the lack of a corporate ‘issuer’ of many cryptoassets. Consumers should be aware of
these risks.

Research Note
Research Context
This survey forms part of a series of research that began in December 2019. We have
repeated the survey every year to understand the trends in UK adults’ cryptoasset
holdings and changes in consumer behaviour.
We made some changes to the survey questions for the wave 4 research conducted in
August 2022. We sought to further understand how the downward movement in the
cryptoassets market and the rise in inflation were affecting consumers’ holdings in
cryptoassets. We kept most of the questions the same to allow direct comparisons and in
this report. Where appropriate we have compared data from 2019 – 2022 to illustrate
evidence of key changes in ownership and awareness.

Research Note
Executive summary
This report contains the findings from our quantitative research conducted in August
2022. The research was conducted to provide further insights into holdings of
cryptoassets within Great Britain, as well as consumers’ understanding, attitudes, and
behavioural patterns towards them. The results from this research will help us with our
policy thinking and will be considered when developing our future regulatory regime for
cryptoassets.
At the moment, UK cryptoasset businesses must comply with the Money Laundering,
Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017
and register with the FCA. However, much of the cryptoassets sector sits outside of the
FCA’s current regulatory perimeter.
Our nationally representative online research of 2,337 UK adults found that 91% of UK
adults had heard of cryptoassets as of August 2022. This is an increase from 78% in
2021 and 42% in 2019. Our research reveals that 9% of adults – 4.97 million - owned
cryptoassets in August 20221. This is compared with 2.3 million or 4.4% we calculated in
2021, showing the growing interest in cryptoassets.
The research includes a boost sample that enables us to ask more detailed questions of
those who own cryptoassets. This allowed us to understand the impact of the downward
movement in cryptoasset prices since our last survey in 2021. The market cap for
cryptoassets dropped from 2.9 trillion USD in November 2021 to just over 1 trillion USD2
in August 2022 at the time the research was conducted. Cryptoasset users3 in the survey
reported being either unaffected or indifferent about selling their cryptoassets as a result
of the crash in prices. Our results also showed that in 58% of cryptoassets users, the
cost-of-living squeeze and the rise in inflation did not cause a change in their attitude to
cryptoassets.
In January 2022, the FCA consulted on the rules that will apply when cryptoassets are
brought within the financial promotions regime. We focused some questions in the
research on advertising, to help understand how advertising influences consumers’
behaviour in relation to cryptoassets. Our results showed that 36% of adults have seen
or heard adverts about cryptoassets; 25% of non-cryptoasset users4 became curious
following exposure to the advertising; and 6% of all adults surveyed were influenced by
an advert to make a purchase.
1
Our Financial Lives Survey showed a similar increase in the ownership of cryptoassets, from 2% of UK adults in February 2020
to 6% in May 2022. While the estimated overall ownership of cryptoassets in 2022 differs between the two surveys, this can be
explained by the different methodologies they use. This estimate does not include the digitally excluded – see survey limitations
section for further details.
2
Coin Market Cap - https://coinmarketcap.com/
3
By ‘cryptoasset users’ we mean people who have bought cryptoassets and either still hold them or have sold some/all of them.
4
By ‘non-cryptoasset users’ we mean people who have never bought cryptoassets, nor held or sold them.

Research Note
We recognise the significant risks associated with cryptoassets, which include the loss of
money. Our research highlighted that, although 79% of cryptoasset users5 purchase
cryptoassets using disposable income/cash, 6% bought cryptoassets using credit or
borrowed money, and 19% used long term savings or previous gains from sold
cryptoassets (14%).
As we further consider these risks and how to mitigate or reduce them through our policy
work, we are conscious of how regulation can influence consumer behaviour. For
example, 28% of non-cryptoasset users reported that they would be more likely to buy
cryptoassets if the market and activities were regulated. In the meantime, we continue
to warn consumers about scams and inform them of the risks associated with investing in
high-risk investments, including cryptoassets through our ScamSmart and InvestSmart
campaigns. Investing in crypto remains unregulated and high-risk – if you invest, you
should be prepared to lose all your money.
5
By ‘cryptoasset users’ we mean people who have bought cryptoassets and either still hold them or have sold some/all of them.

Research Note
1 Research design
The survey was conducted in August 2022 using an online interview administered to
members of the YouGov Plc panel of 800,000+ individuals who have agreed to take part
in surveys. Emails were sent to panellists selected at random with an invitation to take
part in the survey and provided a generic survey link.
The research included three specific sample groups:
• Group 1: An initial screening question of a nationally representative random online

sample of 2,337 UK adults, to ask if they are aware of cryptoassets and whether they
own or have owned any cryptoassets. For this element of the survey respondent
quotas were set based on census data for age, sex, region and social class in order to
provide a nationally representative reporting sample.
• Group 2: Everyone who said they are aware of cryptoassets at the initial screening
question (91%, 2,152 adults) then answered questions related to their awareness,
the definition of cryptoassets, overall attitudes and plans for purchase of
cryptoassets.
• Group 3: A longer version of the questionnaire was shown to an additional boost

sample of 1,027 individuals, also selected from YouGov’s research panel. The boost
sample contained adults that were current or previous cryptoasset users. It was
representative of adults that were current or previous cryptoasset users based on the
nationally representative sample controlled by age, sex, religion, and social grade.
This boost guaranteed that the longer questionnaire was put to a large enough
sample of current or previous holders of cryptoassets to enable reporting
representative of cryptoasset users.
We combined the cryptoasset users (those who own or have owned cryptoassets) from
the nationally representative sample with the additional cryptoasset users sample for a
total sample of 1,330 ‘cryptoasset users’ (adults that currently own or have owned
cryptoassets). The total number of respondents for groups 2 and 3 are set out below:
Non-cryptoassets Cryptoassets Total

users users
Group 2: Nationally 1849 303 2152

Representative sample
Group 3: Boost Sample - 1027 1027
Total 1849 1330 -

Research Note
For the purpose of our research, we used the term ‘cryptocurrency’ throughout the
questionnaire as this is a widely used and understood term among consumers. However,
we will use the term ‘cryptoasset’ throughout our research report to refer to the same
thing, as this is the term used by the FCA which reflects their current primary use as a
speculative investment.
All results are based on a sample and are therefore subject to statistical errors normally
associated with sample-based information. The figures have been weighted and are
representative of all UK adults (aged 18+).
Equality and diversity considerations

As our research note does not contain any policy proposals, and we do not consider it
adversely impacts any of the groups with protected characteristics ie age, disability, sex,
marriage or civil partnership, pregnancy and maternity, race, religion and belief, sexual
orientation, and gender reassignment.
Survey Limitations
As this was an online only survey, the results do not include those adults that are
digitally excluded6. As a result, this may overestimate the number of cryptoasset users,
as the digitally excluded are less likely to have means of easily accessing these products
and are more likely to be older or more vulnerable members of society, that would not
typically invest in cryptoassets. This research allows us to provide a broad estimate of
the number of UK adults who own cryptoassets. Our survey observed that 10% of
respondents owned cryptoassets. Assuming that none of the digitally excluded (6% of UK
adults) own cryptoassets, and allowing for this in our calculations, we estimate that 4.97
million UK adults own cryptoassets. If it were assumed all of the digitally excluded owned
cryptoassets we estimate 5.29 million UK adults would own cryptoassets. Other research
sources7 show overall ownership of cryptoassets to be in the range of 6%-10% of UK
adults. They also show a similar increase in ownership of around 4 percentage points
between 2021 and 2022.
Use of an online panel is a cost-effective way to reach a large number of respondents. It

should be noted however, that use of an online panel will have a degree of response bias.
Those surveyed have signed up to the online panel and are willing to take part in
surveys. Therefore, those surveyed may have different opinions to those unwilling to be
part of an online research panel. While the sampling method accounts for interviewing a
cross-section of adults in terms of age, sex and gender, the opinions and behaviour of
those on an online panel may be different to those not on online panels. We have
checked the distribution against other demographic measures including ethnicity and
education status and investment product ownership to ensure the sample is in-line with
population estimates.
6
Digitally excluded adults are estimated as 6% of households in December 2021:
https://www.ofcom.org.uk/__data/assets/pdf_file/0022/234364/digital-exclusion-review-2022.pdf
7
FCA Financial Lives Research 2022, Mintel Research, Consumers and Investing 2022.

Research Note
As an online survey the results reveal peoples stated preferences in response to the
questions asked. It is not a behavioural study that tracks and measures consumer
actions and knowledge.
Statistically significant differences

Where stated as a statistically significant change this has been tested to a confidence
interval (CI) of 95%.

Research Note
2 Recent Developments
In May 2022, the collapse of stablecoin Terra USD and sister coin Luna affected the
cryptoasset market resulting in a reduction in the total value of cryptoassets in the
market and the individual price of most cryptoassets, including Bitcoin. At the end of
2021, the price of one Bitcoin was at around $46,000. However, at the time our research
was conducted8, the price was at around $23,000. Given the cryptoassets climate when
our research was conducted, we wanted to see the how this influenced consumers’
cryptoasset holdings and behaviour.
Since we conducted our research, we have seen further movement in the cryptoasset
industry and more high-profile failures, such as FTX. The price of cryptoassets has also
been influenced by recent events at Silicon Valley Bank. This further highlights the
volatility of the cryptoassets market.
A number of regulatory developments and events have also taken place since our 2021
research publication:
• The FCA consulted in January 2022 on proposed rules for cryptoassets financial
promotions in CP22/2, following HM Treasury’s (HMT) announcements that it intends
to legislate to bring certain cryptoassets within scope of the financial promotions
regime. This regime will apply to all firms marketing cryptoassets to UK consumers
regardless of whether the firm is based overseas or what technology is used to make
the communication.
• HMT published a policy statement on cryptoasset promotions in February 2023, which

announced HMT’s proposal to introduce an exemption to Section 21 of FSMA enabling
cryptoasset businesses registered with the FCA under the Money Laundering, Terrorist
Financing and Transfer of Funds (Information on the Payer) Regulations 2017
(‘MLRS’), who are not otherwise authorised persons, to communicate their own
financial promotions in relation to qualifying cryptoassets (defined for the purposes of
the Section 21 exemption).9 HMT also announced a reduction in the implementation
time for cryptoasset promotions from 6 to 4 months from the date legislation is made.
• We will publish our final rules for cryptoasset financial promotions once the relevant
legislation is made. Given the reduced implementation time of 4 months set by HMT,
we encourage all firms to get ready. We expect to take a consistent approach
to cryptoassets to that taken for other high-risk investments in PS22/10.
• The government is also currently legislating in the Financial Services and Markets Bill
2022 (FS&M Bill) to introduce a regime that will allow for the regulation of fiat-backed
stablecoins which may be used for payments.
• Government published a further consultation 1 February 2023 on a wider regulatory

regime for cryptoassets. This proposes new regulations for many cryptoasset
8
The field exercise conducted between 9 August to 18 August 2022
9
FCA Website – Cryptoasset firms marketing to UK consumers must get ready for financial promotions regime –
https://www.fca.org.uk/news/statements/cryptoasset-firms-marketing-uk-consumers-must-get-ready-financial-promotions-
regime

Research Note
activities and, as currently consulted on, will expand the FCA’s perimeter in respect of
cryptoassets.
• We held our first Crypto Sprint in early 2022, where we engaged with almost 200
industry figures to discuss key issues and seek their views on future regulation. On 29
June 2022, we published an output from the Sprint. We continue engaging with our
regulatory family, international bodies, priority stakeholders, industry and consumers
as part of our extensive engagement strategy.
• We have supported 133 DLT-based innovations including those operating in the

cryptoasset space: 57 in our Regulatory Sandbox, and 76 firms in our Innovation
Pathways service.
• We are running ScamSmart and InvestSmart campaigns to warn retail consumers

about cryptoasset scams and inform them about the risks of investing in high-risk
investments including cryptoassets.
In January 2022 we published three research notes on behavioural interventions to

improve outcomes for consumers that are considering investing in high-risk investments.
Details can be found here. This details three separate online experiments to test ways to
help consumers understand the risks involved in high-risk investments including
cryptoassets and decide when they may be unsuitable for their needs. Our research
found behavioural science informed risk warnings were effective at improving
participants’ understanding of the risk involved. Similarly, decision-points in the form of
short FAQ-style information were effective at improving consumers’ understanding.

Research Note
3 Overview
Purpose
We began this research series in 2019 to understand the trend in UK adults’ cryptoasset
holdings and changes in consumer behaviour. We are continuing this research series
annually to gain further insights into the potential harms and benefits of cryptoassets and
understand consumers’ attitudes towards cryptoassets.
The results from this research will be used to inform our cryptoasset policy work.
Key findings
Public awareness
• Awareness of cryptoassets has risen significantly since 2021 – 91% of adults
surveyed say they have heard of cryptoassets up from 78% in 2021. Three-quarters
of adults (74%) surveyed correctly recognised the definition of cryptoasset.
Ownership and value

• We estimate that the number of UK adults holding cryptoassets has risen to 4.97
million – from 2.3 million in 202110. This amounts to almost 10% of UK adults holding
cryptoassets, rising from 4.4% in 2021. 11
• The mean value of cryptoasset holdings is £1,595.
• 39% of people surveyed hold their cryptoassets for 1 - 2 years on average, with
almost 40% of owners holding less than £100 in cryptoassets.
• 46% of people surveyed that own cryptoassets reported that their cryptoassets are
now worth less than the initial purchase value.
• The most common reason for purchasing cryptoassets remains ‘as a gamble’ (40%).
• Market volatility since our 2021 survey has impacted the value of cryptoasset
holdings. 45% of people surveyed saw a decrease in their cryptoasset value up to
April 2022.
10
Our Financial Lives Survey showed a similar increase in the ownership of cryptoassets, from 2% of UK adults in February 2020
to 6% in May 2022. While the estimated overall ownership of cryptoassets in 2022 differs between the two surveys, this can be
explained by the different methodologies they use.
11
This research shows 10% of the online population hold cryptoassets. We would expect the overall level of UK adult ownership
to be slightly less than 10% given that the offline population are less likely to hold cryptoassets. See the survey limitations in
section 1 for more information.

Research Note
Experience of owning cryptoassets and areas of potential harm

• One in five (21%) adults surveyed who owns cryptoassets believe they are able to
lodge a complaint in the event of a problem with their cryptoasset holdings. Of these,
50% thought they could complain to the cryptoasset exchange they made the
purchase from. A smaller proportion thought they could complain to their wallet
provider (22%), their bank (7%), the Financial Services Compensation Scheme (7%)
or the Financial Ombudsman Service (3%).
• 28% of non-cryptoasset users reported that they would be more likely to buy
cryptoassets if the market and activities were regulated.
Attitudes to cryptoassets
• 14% of those surveyed said they regretted purchasing cryptoassets.
• 55% of asset owners were happy trading in the market even though it is unregulated.
Stablecoins12
• 10% of people surveyed have heard of stablecoins and 17% accurately identified the
definition of them.
• 15% of cryptoasset users purchased stablecoins.
• When compared with cryptoassets generally, stablecoins are more likely to appeal to
younger adults (18-24), while cryptoassets more generally are more likely to be held
by adults aged 25-44.
12
“Stablecoins are a form of cryptoasset which aim to maintain a stable value relative to other assets”. For the purposes of this
research, we asked specific questions relating to stablecoins and have reported the findings separately from cryptoassets
generally.

Research Note
4 Results
Public awareness
• Awareness of cryptoassets has risen significantly – 91% of adults in our survey say
they have heard of cryptoassets up from 78% in 2021. Three-quarters (74%)
correctly recognised the definition of cryptoassets.
• Social media is playing a more prominent role in cryptoasset advertising, especially

amongst younger adults. 44% of 18–24-year-olds heard of cryptoassets for the first
time through social media.
• A large proportion of cryptoasset owners (10%)13 believe they have greater

protection than they have, should they experience losses or problems with their
cryptoasset holdings.
• 21% of adults believed they could make a complaint in the event of experiencing a
problem with their cryptoasset.
Awareness and understanding of cryptoassets

Overall awareness of cryptoassets amongst respondents is 91%. This is an increase from
78% in 2021 and over double the level of awareness when the survey was first
conducted in 2019 (42%).
Chart 1: Have you heard of cryptoassets? (2020-2022)

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2020 2021 2022
Base (2022: 2337/, 2021: 2015/ 2020: 2068)
Most adults have heard of cryptoassets (93%), including younger adults (18-24). Adults
aged 55+ (89%) are slightly less likely to have heard of cryptoassets.
13
When we refer to ‘cryptoasset owners’, we refer only to those who still own some cryptoasset.

Research Note
Chart 2: Have you heard of cryptoassets? (2022: By age and gender)
55+
45 to 54
Age
35-44
25-34
18-24
Female
Gender
Male
70% 75% 80% 85% 90% 95% 100%
Base (2022: 2337) Note, X axis not set to 0
A higher proportion of males have heard of cryptoassets (95%) compared with females
(88%). The profile of cryptoasset users remains at AB social grade (higher &
intermediate managerial, administrative, professional occupations).
Getting information – first hearing about cryptoassets

Online news and traditional media remain the most common areas where people first
hear of cryptoassets. There is a slight increase from 2021 in those first hearing about
cryptoasset from social media and friends and family.

Research Note
Chart 3: Where did you first hear about cryptoassets – All adults
30%
25%
20%
15%
10%
5%
0%
Online news, Traditional Social media Friends or Online Other Traditional Work
including media (TV, (e.g. family advertising advertising colleagues
blogs and newspapers, Facebook, (TV,
forums (e.g. radio etc.) Instagram newspapers,
Reddit, etc.) radio etc.)
Money
Saving
Expert)
2020 2021 2022
Base 2022): 2152 respondents that have heard of cryptoassets
There is a significant increase in the number of younger adults hearing of cryptoassets

for the first time through social media – 44% of 18–24-year-olds reported first hearing
about cryptoassets through social media in 2022 compared with 28% in 2021. A similar
increase is seen in adults hearing about cryptoassets through friends and family.
Below we look at whether there is a change since 2021 in where those who are
cryptoasset users first heard about cryptoassets.
Chart 4: Where did you first hear about cryptoassets – cryptoasset users
Online news, including blogs and forums (e.g.

Reddit, Money Saving Expert)
Friends or family
Social media (e.g. Facebook, Instagram etc.)
Traditional media (TV, newspapers, radio etc.)
Work colleagues
Online advertising
Traditional advertising (TV, newspapers, radio

etc.)
0% 5% 10% 15% 20% 25% 30% 35%
2022 crypto users 2021 crypto users
Base: cryptoasset users (2022: 1330/ 2021: 1140)

Research Note
For cryptoasset users, online news, and friends and family are the main channels through
which they first heard about cryptoassets. Although, there has been an increase in
awareness through social media – 15% up from 9% in 2021.
For those who do not own cryptoassets, traditional media is a more prominent route
through which they are first made aware of cryptoassets, compared with those who own
cryptoassets, although this has dropped slightly since 2021. Other channels – online
news, friends and family and social media are all more likely channels of initial
knowledge than they were in 2021.
Chart 5: Where did you first hear about cryptoassets – non cryptoasset users
Traditional media (TV, newspapers, radio etc.)

Online news, including blogs and forums (e.g.
Reddit, Money Saving Expert)
Social media (e.g. Facebook, Instagram etc.)
Friends or family
Online advertising
Work colleagues
Traditional advertising (TV, newspapers, radio etc.)
0% 5% 10% 15% 20% 25% 30%
2022 non-crypto-users 2021 non-crypto users
Base: non cryptoasset users (2022: 1849 / 2021: 1869).
The role of advertising and marketing

36% of all adults have seen or heard adverts about cryptoassets. This includes
advertising online, television, radio and, in public (e.g., transport, billboards etc.).
Cryptoasset users are more likely to be exposed to and recall an advert (54%) compared
with those who have never bought cryptoassets (32%).
Chart 6: Where did you hear/see the advert?

50%
40%
30%
20%
10%
0%
Social media Online Online news, Traditional print Traditional media
(e.g. Facebook, advertising (e.g. including blogs advertising (TV, radio etc.)
Instagram, online games, and forums (e.g. (newspapers,
TikTok) banner ads) Reddit, Money billboards, flyers,
Saving Expert) posters etc.)
2020 2021 2022
Base (2022): 765 respondents that have seen cryptoassets advertising.

Research Note
There is an increase in adults recalling seeing adverts through social media and in online
news. While traditional media channels have also increased, they remain less prevalent
compared with online means. The most common place to see an advert is social media:
of those adults that have seen some form of cryptoasset advertising, 44% of all adults
say that they had seen an advert on social media. This increases to 62% of 18–24-year-
olds.
Impact of advertising
We asked those adults that recall seeing an advert what impact they thought this had.
Over half of all adults (57%) reported that the advert had no impact on their attitude to
cryptoassets. However, 18% of cryptoasset users felt they were influenced to purchase
because of advertising.
The research shows that those who have seen adverts for cryptoassets are more likely to
own a cryptoasset and we are concerned that some investors are being tempted - often
through misleading online adverts or high-pressure sales tactics - into buying complex,
higher-risk investment products that are unlikely to be suitable for them, do not reflect
their risk tolerance or, in some cases, are fraudulent. This is explored further in the
research we commissioned with BritainThinks – ‘understanding self-directed investors.’14
Chart 7: Impact of advertising: Would you say the advert you saw/heard… All adults that
have seen cryptoasset advertising
70%
60%
50%
40%
30%
20%
10%
0%
Made you curious Encouraged you to Led you to buy Discouraged you Did not change your
about buy cryptocurrencies from buying attitude to
cryptocurrencies, cryptocurrencies (you had not cryptocurrencies cryptocurrencies
but not enough to (and you were previously thought
buy any already thinking about it)
about it)
Crypto users Non crypto users All adults
Base: 594 non cryptoasset users that have seen advertising, 716 cryptoasset users that
have seen advertising.
For many non-cryptoasset users, the role of advertising has had an impact – a quarter
(25%) were made curious about cryptoassets having seen an advert, but not curious
enough to purchase. Over one in 10 (13%) were discouraged from buying cryptoasset
after seeing an advert.
14
BritainThinks: Understanding self-directed investors. A summary report of research conducted for The Financial Conduct
Authority - https://www.fca.org.uk/publication/research/understanding-self-directed-investors.pdf

Research Note
Overall understanding of cryptoassets

When presented with a list of 4 possible definitions of cryptoassets, three-quarters (74%)
of all adults correctly recognised the definition as15:
A cryptoasset is a cryptographically secured digital representation of value or contractual

rights that uses some type of distributed ledger or blockchain technology and can be
transferred, stored or traded electronically.
Chart 8: Understanding the definition of cryptoasset (cryptoasset and non-cryptoasset

users)
Non-crypto users
Crypto users
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Base: 1330 cryptoasset users, 1849 non cryptoasset users.
92% of cryptoasset users were able to correctly identify the definition of cryptoassets
(this is statistically different to the 62% of non-crypto users that correctly identified the
definition), therefore, 8% of people purchased cryptoassets without knowing its
definition.
Recognising types of cryptoassets

There are over 21,000 different cryptoassets available. Bitcoin remains the most
recognised cryptoasset, with over three-quarters (78%) of respondents having heard of
it. A quarter of respondents (27%) are familiar with Ether (Ethereum) and 1 in 5 (22%)
recognised Bitcoin Cash.
15
Other options presented were: 1) A cryptocurrency is a body of private information about an individual, organisation or
electronic device that exists online. 2) A cryptocurrency is a dedicated website or other application which enables users to
communicate with each other by posting information, comments, messages or images. 3) A cryptocurrency is a means of raising
money by selling numbered tickets and giving prizes to the holders of numbers drawn at random.

Research Note
Chart 9: Recognition of selected cryptoassets – all adults that have heard of cryptoasset
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Bitcoin Ether Bitcoin Litecoin Bitcoin SV Binance Tether XRP
(Ethereum) Cash Coin (Ripple)
2020 2021 2022
Base: UK adults that have heard of cryptoassets (2022: 2152/ 2021: 2015/ 2020: 2068)
Awareness of most types of cryptoassets – Bitcoin, Bitcoin Cash, Litecoin - has remained
almost unchanged since 2020. Ether has gained recognition to over a quarter (27%) of
those who have heard of cryptoassets.
The charts below show the difference in recognition of different types of cryptoassets by
those who own cryptoassets and those who do not. Bitcoin is the most recognised type of
cryptoasset amongst both cryptoasset and non-cryptoasset users.
Chart 10: Recognition of selected cryptoassets - cryptoasset users (2021 – 2022)
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Bitcoin XRP Ether Bitcoin Litecoin Tether Bitcoin SV Binance
(Ripple) (Ethereum) Cash Coin
2021 Crypto users 2022 Crypto users
Base: cryptoasset users (2022: 1330/ 2021: 1140)
Amongst cryptoasset users, awareness of different types is relatively high with little
change from 2021.

Research Note
Chart 11: Recognition of selected cryptoassets - non cryptoasset users (2021-2022)
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2021 Non-crypto users 2022 Non-crypto users
Base: non cryptoasset users (2022: 1849 / 2021: 1869)
Amongst non-cryptoasset users, Bitcoin is the most common type of cryptoasset

recognised. Awareness of Ether (Ethereum) has increased since 2021 amongst non-
cryptoasset users but, overall, awareness of different types of cryptoassets other than
Bitcoin remains quite low amongst non-cryptoasset users.
Chart 12: Recognition of selected cryptoassets - cryptoasset users and non cryptoasset
users (2022)
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2022 Crpyto users 2022 Non-crypto users
Base: 1330 cryptoasset users, 1849 non cryptoasset users
Awareness of different types of cryptoassets is higher amongst cryptoasset users

compared with non-cryptoasset users. Although, those who do not own cryptoassets are
more likely to be aware of Bitcoin, compared with those who do own cryptoassets.

Research Note
Purchasing journey – information sources

For adults that own or have owned cryptoassets in the past, we asked what type of
information sources they used before making a purchase. One in 8 adults (13%) did not
conduct any research before making a purchase.
Chart 13: Sources of information used to conduct research before purchasing

cryptoassets – Cryptoasset users
Online forums (e.g. Reddit)
Friends/family/colleagues
Financial publications and websites (e.g. the
Financial Times, MoneySavingExpert,…
Social media platforms*
Speaking with an expert in blockchain
technology or related technologies
The Financial Conduct Authority (FCA)
website or Financial Service Register for…
Other type of research
I only conducted research after I first
bought the cryptocurrency
A financial advisor
I didn't do any research
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
2022 2021
Base: cryptoasset owners (2022: 1251/ 2021: 1015) *Social media platforms not asked
in 2021
Online forums were the most commonly used source of information. Friends and family
were the second most common source. The use of financial publications has increased
since 2021 but speaking with an expert and using the FCA website or register has
decreased, as has the use of a financial adviser.

Research Note
Ownership and value

• Our estimate for UK adults holding cryptoassets has risen to 4.97 million – from
2.3 million in 2021. This amounts to almost 10% of UK adults holding
cryptoassets, rising from 4.4% in 202116.
• The most common reason for purchasing cryptoassets remains “as a gamble”
(40%).
• The mean value of cryptoasset holdings is £1,595.
• Almost 2 in 5 owners hold less than £100 in cryptoassets.
• 39% of people hold their cryptoassets for 1 - 2 years on average.
• 46% of people that own cryptoassets reported their cryptoassets are now worth
less than the initial purchase value.
• Recent market volatility has impacted the value of cryptoasset holdings. 45% of
people saw a decrease in their cryptoassets value up to April 2022.
Growth in ownership of cryptoassets

Ownership of cryptoassets increased between 2019 to 2021, during the Coronavirus
pandemic. This may partly be because some adults had more disposable income (see
Chart 17) along with time to investigate and research the market. It may also be due to
easier access to cryptoassets as platforms became more innovative and awareness of the
platforms increased. These themes are explored further in the BritainThinks report:
Understanding self-directed investors.
Chart 14: Adults currently holding cryptoassets (%)
12%
10%
8%
6%
4%
2%
0%
2020 2021 2022
Base (2022): 2337 respondents
16
While our Financial Lives Survey showed a similar increase in the ownership of cryptoassets, from 2% of UK adults in February
2020 to 6% in May 2022, the estimated overall ownership of cryptoassets in 2022 differs between the two surveys. This can be
explained by the different methodologies used.

Research Note
Looking at the profile of adults that own cryptoassets:
• Owners are more likely to be male and younger – aged under 45.
• Ownership is highest in London and Northern Ireland.
• Those who own cryptoassets are more likely to have a higher-than-average

household income.
• They are more likely to hold other high-risk investment products such as
investment-based crowdfunding or peer-to-peer investments.
A number of adults (3%) have bought cryptoassets in the past but have now sold all of
them. This means that 13% of all adults have at some point owned cryptoassets.
Chart 15: Cryptoasset users’ cryptoassets ownership
I bought cryptocurrencies in the past and still

own them
I bought cryptocurrencies in the past and sold

some of them
I bought cryptocurrencies in the past and sold

all of them
I own cryptocurrencies but did not pay for

them
0% 1% 2% 3% 4% 5% 6% 7%
Base: 2337 respondents
Which type of cryptoassets are people purchasing?

Bitcoin remains the most common type of cryptoasset held (60%), closely followed by
Ether (48%). Although awareness of Binance Coin and Tether (stablecoins) has increased
since 2021, this has not translated into ownership of these stablecoins.

Research Note
Chart 16: Type of cryptoassets owned
70%
60%
50%
40%
30%
20%
10%
0%
Base: Cryptoasset owners (1065)
Most notably, a third of cryptoasset owners own ‘different cryptoassets’ to those listed in
our research.
Purchasing cryptoassets
The majority of those purchasing cryptoassets are using their disposable income (79%).
However, a small but significant number (19%) are using long-term savings or
investments, and 6% are using credit facilities. Using credit instead of own disposable
income suggests potentially risky behaviour, as consumers may risk losses and incur
greater debt. This could pose significant financial risk to consumers if their expected
returns are not realised.
Chart 17: How are people paying for cryptoassets? – Cryptoasset owners
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
My own disposable My own long-term Previous gains (sold With a credit card or
income/cash savings or other existing credit facility
investments cryptocurrencies) (e.g. overdraft)

Research Note
Reasons for buying or not buying cryptoassets

The main reason people purchased cryptoassets is as a gamble that could make or lose
money (40%). This is slightly more than the results in 2021, but lower than the 47%
recorded in 2020. Three in 10 own cryptoassets as part of a wider investment portfolio,
as in the previous year.
Chart 18: Main reasons for buying cryptoassets – cryptoasset owners
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
As a gamble that As part of a Expecting to I don't want to Instead of Influenced by Saving for my For payment of
could make or wider make money miss out on buying shares or friends/family retirement / goods/services
lose money investment quickly buying other financial (new 2022) long term
portfolio cryptocurrencies investments/ investment (e.g.
products pension)
2020 2021 2022
Compared with 2021, an increasing number of people expected to make money quickly
(21%). Fewer adults were purchasing cryptoassets for the payment of goods and
services. A number of adults (16%) have been influenced to purchase by friends and
family, though this is a new category included in 2022 survey.
There are several reasons why people do not buy cryptoassets. Some reasons relate to
lack of disposable income, low risk appetite, or lack knowledge about cryptoassets or
where to acquire them. A lack of knowledge in how cryptoassets work is the main reason
why people have not bought them (20%) and a further 4% cited a lack of knowledge on
how to buy cryptoassets.

Research Note
Chart 19: Main reason for not buying cryptoasset/not planning to buy cryptoasset – non
cryptoasset users
Lack of knowledge on how cryptocurrencies work
Too risky to buy (e.g. due to their price changes)
There is no protection if anything goes wrong

(e.g., From the Bank, FSCS or FOS)
Not having enough money to invest in the
cryptocurrency to make it worthwhile
Unclear of benefit
Heard or read negative stories
It is not regulated by the FCA
Lack of knowledge on how to buy

cryptocurrencies
Lack of security (e.g. afraid my cryptocurrencies
will be stolen)
Too difficult or complex to buy
Not sure if/where I can use them (e.g. in

exchange for a good/service)
0% 5% 10% 15% 20% 25%
Base: non cryptoasset users (1849)
Risk is a leading reason not to purchase – 18% mentioned that cryptoassets are too risky
due to the price changes and 5% have heard or read negative stories that have
dissuaded them from investing. The lack of financial protection is a reason cited by 14%
of adults, while 4% said a lack of FCA regulation is the main reason.
Purchasing cryptoassets
The market for cryptoassets is volatile and there have been large changes in the value of
cryptoassets in 2022 compared to previous years. These changes are reflected in when
people first purchased their cryptoassets. Of those who currently own cryptoassets, a
very small proportion (8%) made their first purchase in 2022.

Research Note
Chart 20: When did you first purchase cryptoassets?
60%
50%
40%
30%
20%
10%
0%
Before 2009 Between 2010 Between 2013 Between 2016 Between 2019 In 2022
and 2012 and 2015 and 2018 and 2021
Base: 1330 cryptoasset users
The bulk of those who own cryptoassets made their first purchase between 2016 and
2021 which reflects their increasing popularity and value in this period. The majority –
54% - made their first purchase between 2019 and 2021 when values were typically
rising.
The vast majority (72%) of cryptoasset users obtained their cryptoassets through an
online exchange.
Chart 21: Buying cryptoassets: How do you typically buy/obtain your cryptoassets?
80%
70%
60%
50%
40%
30%
20%
10%
0%
An online A peer-to- An initial coin Through You received You received Another
exchange peer offering friends, it as payment it as a gift company
(e.g. decentralised (ICO) family or (e.g. Revolut)
Coinbase, exchange colleagues
Binance, (e.g.
Kraken) Shapeshift)
The most common exchange used was Coinbase, used by just over 3 in 5 adults that
used an online exchange. Over a quarter (28%) used Binance and a small number (4%
respectively) used Luno and KuCoin – these exchanges are based overseas and are not
registered with the FCA for the supervision of anti-money laundering and counter
terrorist financing. 1 in 10 (9%) used Kraken, and a small number (3%) used Gemini –

Research Note
both of which are registered with the FCA for the supervision of anti-money laundering
and counter terrorist financing17.
Chart 22: Use of an exchange: which exchanges have you used?
70%
60%
50%
40%
30%
20%
10%
0%
Coinbase Binance Kraken* Luno KuCoin Gemini*
Base: 962 cryptoasset users that have used an exchange
* Registered with the FCA under the Money Laundering, Terrorist Financing and Transfer
of Funds (Information on the Payer) Regulations 2017 (MLRs).
How much value do people hold in their cryptoassets?

The majority of those who hold any cryptoassets have relatively low-level holdings:
almost 2 in 5 adults (39%) that own cryptoasset hold a value of under £100. Looking at
those with under £100, over half of adults aged 18-24 hold less than £100 (51%), and
females are also more likely than males to have a low level of holdings.
Chart 23: What is the value of the cryptoassets you currently hold?
39% 13% 11% 13% 14% 6% 5%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
£100 or below £101 - £250 £251 - £500 £501 - £1,000

£1,001 - £5,000 £5,001 - £10,000 £10,001 or more
Base: Cryptoasset owners (excluding ‘prefer not to say’): 927
17
Kraken is 5MLD registered as PAYWARD LTD

Research Note
Adults aged 45 to 54 and 55+ are more likely to hold over £1,000 in cryptoassets when
compared to other adults. 25% of cryptoasset owners in these age brackets reported
owning over £1,000 in cryptoassets.
Adults with over £10,000 of cryptoassets are more likely than other adults to have
afforded their purchase through their own long-term savings or investments, or through
previous cryptoassets gains.
Chart 24: How cryptoassets were purchased by value
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
My own disposable With a credit card or My own long-term Previous gains (sold
income/cash existing credit facility savings or investments other cryptocurrencies)
(e.g. overdraft)
£1 - £250 £251 - £1,000 £1,000 - £10-000 £10,000 plus
Adults with cryptoasset holdings under £1,000 are most likely to have made their
purchase as a gamble compared with investing as part of a longer-term strategy. Those
with greater levels of holdings (£1,000 plus) are more likely to say it is part of a wider
investment portfolio and as a long-term investment.

Research Note
Chart 25: Reason for purchase by value
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Instead of buying As part of a wider Expecting to Saving for my As a gamble that
shares or other investment make money retirement / long could make or
financial portfolio quickly term investment lose money
investments/ (e.g. pension)
products
£1 - £250 £251 - £1,000 £1,000 - £10-000 £10,000 plus
These different reasons for purchasing cryptoassets are reflected in the length of time
adults have held onto their cryptoassets. Those with larger holdings have held the
cryptoassets longer, which indicate the intention for it to be a long-term investment.
Those who have held cryptoassets for a short time are more likely to have lower values
of them. Of those with less than £250, a third have had their cryptoassets for less than a
year and 43% said they purchased cryptoassets as a gamble.

Research Note
Chart 26: How long cryptoassets held by value
100%
3% 1% 5%
11%
13%
90% 12%
6%
80%
11% 16%
26%
46%
70%
60%
38%
50%
43%
40% 15%
45%
30%
20% 24% 26%

19%
10%
14%
6% 7% 5%
1% 0% 2%
0% 2% 3%
£1 - £250 £251 - £1,000 £1,000 - £10-000 £10,000 plus
1 week or less 2 - 4 weeks 1 - 3 months 4 - 12 months

1 - 2 years 3 - 4 years 5 years or more Don't know
Our results show that as the holding value increases, so does the holding time of the
cryptoassets. Almost half of adults (46%) with £10,000 or more in value have held their
cryptoassets for 5 years or more. 15% of adults that have held their cryptoassets for 5
years or more have no other investments, compared with 31% of those who have had
their cryptoassets for 1-2 years.
Adults with more holdings in cryptoassets are more likely to have a diversified portfolio in
terms of type of cryptoassets held.

Research Note
Chart 27: Type of cryptoasset holdings by value
Bitcoin
Ether (Ethereum)
Bitcoin Cash
Litecoin
Bitcoin SV
Binance Coin
Tether
XRP (Ripple)
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
£10,000 plus £1,000 - £10-000 £251 - £1,000 £1 - £250
Those with smaller cryptoasset holdings are more likely to hold a single cryptoasset. Of
those adults with under £100 held in cryptoassets, 41% held it all in a single type of
cryptoasset. This compares with 25% of those with over £10,000 held in cryptoassets.
For holdings under £1,000 – Bitcoin (54%) and Ether (50%) are the most common types
held. Around a quarter of these adults are holding Litecoin or ERP (Ripple).
What are people using cryptoassets for?

Around one-sixth (16%) of crypto-users have used cryptoassets to pay for goods and
services.
Two in 5 (40%) cryptoasset owners have never used their cryptoasset. A third have
converted them to cash and almost 3 in 10 (29%) have exchanged them for other
cryptoassets.

Research Note
Chart 28: Use of cryptoassets: Have you ever used any of your cryptoassets?
I have never used them
I have converted them into currency (i.e. cash)
I have used them to purchase goods or services
I have used them to purchase other financial

products
I have exchanged them for other

cryptocurrencies
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Just 16% of cryptoasset users have used them to purchase goods or services while 1 in
20 (5%) have used them to purchase other financial products.
Gains or losses from cryptoasset holdings.

The cryptoasset market is volatile, particularly since late 2021. We conducted this
research in August 2022, and Bitcoin had, up to August 2022, lost more than two-thirds
of its value since November 2021. Ethereum prices declined more than 7% in August
2022 and were down 59% in 2022.
This volatility shows the risks involved in participating in this market. Our results show
consumers stating that the movement in the market has impacted their likelihood to buy
cryptoassets, and also caused some to cash in some, if not all their cryptoasset holdings.
We asked all those who currently own cryptoassets, whether the value of their holdings
had increased or decreased up to April 2022. One in ten cryptoasset owners (11%)
reported losses of 51% to 100% in the year up to April 2022, with a further 2 in 5 (21%)
reporting losses of 21% to 50%. Overall, almost half (45%) of cryptoassets owners
reported losses in the 12 months up to April 2022 compared with 10% that reported
losses in the 12 months up to April 2021.

Research Note
Chart 29: Gains/losses of cryptoasset holdings up to April 2022.
They've significantly increased (+ 100% plus)
They've greatly increased (+51-100%)
They've increased (+1-50%)
They've remained unchanged
They've decreased (- 1-20%)
They've greatly decreased (- 21-50%)
They've significantly decreased (- 51-100%)
I do not know the value of my cryptocurrencies
I know the value of my cryptocurrencies

but I do not know how much the value
has changed
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
2022 2021
Base: All current owners of cryptoasset (1065)
One-third (32%) of cryptoasset owners reported an increase in the value of their

investment up to April 2022 compared with two-thirds that reported an increase in the
12 months up to April 2021.
Cryptoasset performance
When comparing the performance of cryptoasset holdings with the 2021 survey results,
we see a larger proportion of cryptoasset holders reporting that the value of their
cryptoasset holdings is lower than the initial purchase price (46%). Only one third (33%)
reported that the current price is higher than the initial purchase price.

Research Note
Chart 30: Change in value of cryptoassets: since your initial purchase, is the value of
your cryptoassets…
33% 46% 8% 13%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Greater than the initial purchase price Less than the initial purchase price
The same as the initial purchase price Don't know
Those with larger amounts invested are more likely to report gains over the time of their
investment. Of those with £10,000 or more invested, almost three-quarters (74%)
reported that their investment is greater than the initial purchase price. Although larger
holdings correlate with longer held holdings, which may also be the reason for the gain.
Chart 31: Gains/losses by value
£10,000 plus 74% 13% 8% 5%
£1,000 - £10-000 41% 44% 13% 2%
£251 - £1,000 33% 50% 7% 9%
£1 - £250 23% 52% 7% 18%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Greater than the initial purchase price Less than the initial purchase price
The same as the initial purchase price Don't know

Research Note
Those with less than £10,000 invested are more likely to report a loss. For around half of
those with under £10,000 invested, the value of their investment is lower than the initial
purchase.
Selling cryptoassets
Our results showed that half of current cryptoasset owners have never sold any of their
cryptoassets.
Just over a quarter (28%) have sold their cryptoasset and a small minority (4%) have
tried to sell their cryptoassets but were unable to do so.
Chart 32: Selling cryptoasset: Have you ever tried to sell any of your cryptoassets?
60%
50%
40%
30%
20%
10%
0%
I have never sold them I plan to sell but haven't I tried to sell them, but I have sold them
yet I wasn't able to
Base: 840 current cryptoasset owners
Experience of owning cryptoasset and areas of potential harm
• One in 5 (21%) believe they are able to complain in the event of a problem with their
cryptoasset holdings. Of these, 50% would complain to the cryptoasset exchange
they made the purchase from. A smaller proportion would complain to their wallet
provider (22%), their bank (7%), the Financial Services Compensation Scheme (7%)
or the Financial Ombudsman Service (3%).
• 28% of non-cryptoasset users reported that they would be more likely to buy
cryptoassets if the market and activities were regulated.

Research Note
Chart 33: How often you check your holding by value?
£10,000 plus 22% 24% 32% 14% 3%5%
£1,000 - £10-
5% 27% 31% 20% 13% 3%
1%
000
£251 - £1,000 5% 14% 26% 35% 14% 3%

3%
£1 - £250 2% 10% 22% 31% 18% 6% 12%
0% 20% 40% 60% 80% 100%
More than once a day

Daily
Weekly
Monthly
Quarterly
Yearly
Never (I haven't checked since purchasing)
Over 1 in 5 (22%) adults with over £10,000 check their cryptoasset holdings more than
once a day with a further 24% checking daily. At the other extreme, those with a value
between £1 and £250 are more likely to check their holdings less regularly or not at all.
Negative consumer experiences

The majority (69%) of cryptoasset users surveyed have not experienced any issues
relating to owning or purchasing cryptoassets. Of those who have experienced a
problem, the problems ranged from: difficulty withdrawing the value of their cryptoassets
into their bank account (10%), forgetting their private key (3%) or password (3%) so
could not access their account, difficulty contacting customer service of the exchange
provider (3%) or difficulty with navigating the website or apps (6%).

Research Note
Chart 34: Negative experiences: Have you had any negative experiences relating to
owning/purchasing cryptoasset?
80%
70%
60%
50%
40%
30%
20%
10%
0%
I had difficulty I have I forgot my I forgot my I had difficulty No, I have not
withdrawing my difficulties password and private key and contacting experienced any
cryptocurrency navigating the could not access I could not customer issues
into my bank website/apps my account access my service for the
account wallet exchange
provider
Consumer understanding of risks

Where consumers take on investment risks, they should have the information they need
to understand these risks. Risk factors of potential harm include:
• low income (with limited capacity to bear loss);
• investing in cryptoassets with the mistaken belief that they have regulatory
protection;
• purchasing cryptoassets through borrowing from other sources;
• a poor understanding of cryptoassets.

To further understand consumer understanding of cryptoassets, we asked a series of
questions about whether they believed they had financial protection 18 when they
purchased their cryptoasset. We asked a follow up question to understand what financial
protection they thought they would have from either the exchange or wallet provider,
their bank, FOS, FSCS or FCA.
90% of cryptoasset users understood that they did not have financial protection, but this
leaves 10% of adults that believed they have protection.
18
By financial protection, we meant to be able to bring a complaint or be compensated for their cryptoasset holding in the event
they lose them.

Research Note
Chart 35: Financial protection: Did you believe you had financial protection (you would
be compensated for holding cryptoassets in the event you lose them) when you
purchased cryptoassets?
10%
90%
Yes No
Cryptoassets are high-risk investments and largely fall outside the FCA’s current
regulatory remit. Therefore, anyone who invests in them should be prepared to lose all
their money as they are unlikely to be subject to financial protections under the Financial
Services Compensation Scheme (FSCS).
We asked cryptoasset users who they thought would provide protection. Almost half
named the wallet provider (46%) or the cryptoasset exchange where they purchased the
cryptoasset (45%). A quarter of those who believed incorrectly that they had protection
mentioned FSCS (24%) and 1 in 5 (19%) mentioned the FCA.
One in 5 cryptoasset users (21%) believed they are able to bring a complaint in the
event of a problem with their cryptoasset holdings. Of these, half (50%) of cryptoasset
users believe they would be able to raise a complaint with the cryptoasset exchange they
purchased the cryptoasset on. A smaller proportion thought they could complain to their
wallet provider (22%), their bank (7%), the Financial Services Compensation Scheme
(7%) or the Financial Ombudsman Service (3%).
Although complaints can be made to exchanges or wallet providers, they are not
currently required to comply with any industry or regulatory requirement to have
adequate complaint procedures in place and cryptoasset users cannot escalate the
complaints to the FOS.

Research Note
Chart 36: Elements of financial protection
Do you think you will be able to bring a

complaint in the event of a problem with your
cryptocurrency holdings?
Did you believe you had financial protection

(you would be compensated for holding
cryptocurrencies in the event you lose them)
when you purchased cryptocurrency?
Does financial protection, or the lack thereof,

impact your decision to buy cryptocurrencies?
Are you aware of the consumer alerts about

cryptocurrency / purchasing crypto posted on
the FCA website?
0% 5% 10% 15% 20% 25% 30% 35%
Almost a third (30%) of UK cryptoasset users say financial protection impacts their
decision to purchase cryptoassets. A similar proportion (31%) are aware of the
cryptoasset alerts on the FCA website. However, 3 in 5 (61%) cryptoasset users that are
aware of FCA alerts, reported that these alerts had no impact on their decision to
purchase cryptoassets. 14% reported that FCA alerts discouraged them from buying
cryptoasset, and a further 14% were prompted into finding out more information.
Regulation of cryptoassets
55% of cryptoasset users reported that they are happy trading in this market even
though it is largely unregulated. Of the 90% of adults who have not invested in
cryptoassets, 28% agreed that increased regulation is likely to encourage them to
consider the purchase of cryptoassets. This suggests that if the market were further
regulated beyond current anti-money laundering and counter-terrorist financing rules,
there could potentially be an increase in ownership of cryptoassets in the UK.

Research Note
Chart 37: Potential impact of regulation: to what extent do you agree with this
statement.
60%
50%
40%
30%
20%
10%
0%
I'm happy trading in this market even I would be more likely to buy
though it is largely unregulated (Crypto cryptocurrencies if it was regulated (Non-
users) crypto users)
Cost of living
In addition to the market volatility, the UK is facing a cost-of-living squeeze. This has the
potential to impact the cryptoasset market. For example, disposable cash is the
predominant means by which people purchase cryptoassets, but people may have less of
this during the cost-of-living squeeze. Contrastingly, there is a risk that some consumers
could look to make a higher-than-average return or a quick win, potentially increasing
purchasing of cryptoasset.
Our research was conducted towards the start of the cost-of-living squeeze and so
provides estimates of the impact up to this point. If we were to repeat the research
today, our measurement of impact may be materially different.

Research Note
Chart 38: Impact of cost of living: Would you say the cost-of-living squeeze and rise in
inflation has:
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Made you curious Encouraged you Encouraged you Discouraged you Encouraged you Did not change
about to buy to buy from buying to sell some or your attitude to
cryptocurrencies, cryptocurrencies cryptocurrencies cryptocurrencies all of your cryptocurrencies
but not enough (you were (you had not cryptocurrencies
to buy any already thinking previously
about it) thought about it)
Crypto users Non-crypto users
Base: 1330 asset users, 1849 non cryptoasset users
For many, the cost-of-living squeeze did not change their attitude to investing when we
conducted the survey. Over 80% of those not using cryptoassets remained unlikely to
invest and over half of those investing in cryptoassets had not changed their attitude. A
small number were discouraged from buying cryptoassets in future.
Attitudes to cryptoassets
• 14% said they regretted purchasing cryptoassets.
• Less than half (47%) of those who own or have owned cryptoassets believe they have
a good understanding of how the underlying technology works.
• More than half (55%) of asset owners are happy trading in the market even though it
is unregulated.
Our research shows that the cryptoassets market has grown in popularity and number of
users in the past 12 months. It is important to understand consumer attitudes to the
market to anticipate how they will behave in future and identify any potential risks.

Research Note
Chart 39: Attitudes to cryptoassets (% agree with statement - asset users)
I believe I have a good understanding of how

cryptocurrencies and the underlying technology
works
I would buy more cryptocurrencies if I had a

larger disposable income
I'm happy trading in this market even though it is

largely unregulated
Purchasing cryptocurrencies is a risk I'm prepared

to take
0% 10% 20% 30% 40% 50% 60% 70%
Less than half of those who own or have owned cryptoassets feel they have a good
understanding of how the underlying technology works.
Those with larger amounts invested are more likely to believe, they have a good
understanding of how cryptoassets and the underlying technology works. Almost 4 in 5
(79%) adults with over £10,000 invested agree they have a good understanding, falling
to just over a third (37%) of those with less than £250 invested.
Chart 40: Understanding by value (I believe I have a good understanding of how

cryptoassets and the underlying technology works)
£10,000 plus 37% 42% 16% 3%

3%
£1,000 - £10-000 17% 47% 24% 10% 2%
£251 - £1,000 10% 43% 31% 16% 0%
£1 - £250 4% 33% 31% 26% 6%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree
Base: cryptoasset owners (1330)
Over half of those invested in cryptoassets agreed that they would buy more if they had
a larger amount of disposable income (60%), and this is greater for those who already

Research Note
hold larger amounts in cryptoassets and those who have made large gains from their
cryptoasset holdings.
Chart 41: Would you buy more by value of holding
£10,000 plus 59% 19% 16% 3%

3%
£1,000 - £10-000 28% 43% 14% 11% 4%
£251 - £1,000 21% 42% 23% 11% 3%
£1 - £250 14% 43% 20% 16% 7%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Purchasing more
Almost 4 in 5 (78%) of those with over £10,000 invested would buy more cryptoassets.
57% of those with under £250 invested agreed that they would buy more if they had a
larger amount of disposable income.
Over a quarter (27%) of those adults that have held cryptoassets believe that
cryptoassets and other alternative investments are better investments than those
provided in the mainstream financial sector.

Research Note
Chart 42: Attitudes to cryptoasset (% agree with statement – cryptoasset users)
I believe that cryptocurrencies and other

alternative investments are better than
investments provided in the mainstream
financial sector
I regret ever having bought cryptocurrencies
I know that at some stage, I will make money

out of the cryptocurrency market
I have had a positive experience with

cryptocurrencies and I am more likely to buy
more
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Over 2 in 5 cryptoasset users (43%) agree with the statement that they ‘know at some
stage they will make money out of the cryptoassets market’.
A total of 14% of cryptoasset users regret ever having bought cryptoassets.
Chart 43: Regret buying cryptoassets by value of holding
£10,000 plus 11% 8% 26% 55%
£1,000 - £10-000 1% 10% 13% 38% 38%
£251 - £1,000 6% 9% 26% 41% 19%
£1 - £250 3% 10% 26% 44% 17%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Research Note
Those with larger holdings are more likely to disagree with this statement – over half
(55%) of those with over £10,000 invested disagree. This is unsurprising as these are
the group that have made the most gains through their investments.
Experience
Chart 44: Experience of cryptoassets by value of holding
£10,000 plus 38% 41% 13% 3%5%
£1,000 - £10-000 23% 45% 27% 6%

1%
£251 - £1,000 8% 36% 40% 14% 1%
£1 - £250 4% 22% 51% 18% 6%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Those with £10,000 or more invested are more likely to say they have had a good
experience. 51% of those with under £250 neither agree nor disagree with the statement
– that they have had a positive experience with cryptoassets.

Research Note
Stablecoins
• 10% of all adults have heard of stablecoins.
• Understanding of stablecoins is low – 17% of adults correctly identified their

definition.
• A lack of knowledge of stablecoins is one of the main reasons stated why people have
not bought stablecoins.
Awareness of stablecoins
One in 10 (10%) of all adults have never heard of stablecoins. However, amongst those
who are cryptoasset users, over half (52%) are aware.
Chart 45: Awareness of stablecoins: Have you heard of stablecoins before today? (%
agree with statement)
Non crypto users
Crypto users
0% 10% 20% 30% 40% 50% 60%
When asked to identify the correct definition of a stablecoin, 17% of all adults correctly
identified it. This is much lower than the number that recognise the definition of
cryptoassets.
The generally recognised definition of a stablecoin is19:
A token which seeks to stabilise its value in relation to a currency or another asset(s).
Adults that are cryptoasset users were more likely to identify the correct definition.
However, only 47% identified the correct definition. 35% of cryptoasset owners said that
they did not know the correct definition compared with three-quarters (75%) of non-
cryptoasset users. Overall, knowledge on stablecoins is low in respondents, for both
cryptoasset users and non-cryptoasset users.
19
Other options presented were 1) A stablecoin is a derivative which is used to hedge volatility in cryptoassets such as Bitcoin.
2) A stablecoin is a token which can only be issued by sovereign governments and is used to represent the digital form of a fiat
currency.

Research Note
Purchasing stablecoins
15% of cryptoasset owners revealed that some of the cryptoassets they bought were
stablecoins, and this increased to 30% amongst those aged 18-24.
When asked why they purchased stablecoins, the main reason was to use on exchanges
when buying other cryptoassets (46%). This was followed by those who wanted to use
the stablecoin as a store of value (42%).
Chart 46: Reason for purchasing stablecoins: What was the purpose for buying them as
stablecoins? (Stablecoin owners)
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
To use on To use as a store To exchange for To use for buying To use for buying
exchanges when of value cash other goods or other financial
buying other services products
cryptocurrencies
Base:186 owners of stablecoin
Men were more likely to use stablecoins as a store of value (48%) than women (24%).
Women were more likely to use stablecoins to use on exchanges to buy other
cryptoassets – 56% compared with 43% of men.
Ownership of stablecoin
Amongst cryptoasset users, the most popular stablecoins are Tether and USDC. USDC
overtook other stablecoins in 2022 as the second most popular stablecoin when
compared with 2021 results.

Research Note
Chart 47: Stablecoins: recognition
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Tether USDC Paxos standard TrueUSD
2021 Recognition amongst crypto users 2022 Recognition amongst crypto users
Base (2022): 1330 cryptoasset users
There have been increases in the recognition of Tether and USDC to 43% and 24%
respectively.
These recognition figures are also reflected in ownership. Tether and USDC are the most
commonly held type of stablecoins and are showing moderate increases in ownership
since 2021.
Chart 48: Stablecoins: ownership
9%
8%
7%
6%
5%
4%
3%
2%
1%
0%
Tether USDC Paxos standard TrueUSD
2021 Ownership among crypto owners 2022 Ownership among crypto owners
Base (2022):1065 cryptoasset owners
A lack of knowledge of stablecoins is the main reason why people have not bought them.
Two in 5 (39%) cited a lack of knowledge as a reason not to have bought stablecoins. A
further 15% said that they lacked knowledge in how to buy stablecoins.

Research Note
Chart 49: Reasons for not buying stablecoin: Why haven't you bought any stablecoins?
(Non-stablecoin owners)
Lack of knowledge about stablecoins
Haven't had any need to buy them
Unclear of benefit
Lack of knowledge on how to buy stablecoins

Not sure if/where I can use it (e.g. in exchange for a
good\service)
Too risky to buy (e.g. due to their price changes)
It is not regulated
Lack of security
Heard or read negative stories
Too difficult or complex to buy
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Base: 1065 cryptoasset users that have not bought a stablecoin
Just over a quarter of adults (26%) are unclear of the benefits of stablecoins. And 1 in 10
(9%) are unsure where they can be used.

Research Note
Conclusion
The principal aim of this research series is to gain insight into holdings of cryptoassets in
UK adults and understand motivations for investing and attitudes/behavioural patterns
towards cryptoassets. Through this survey, we understand the trends in UK adults’
cryptoasset holdings and changes in consumer behaviour. Our results have shown that
there is increasing awareness and purchasing of cryptoassets, with almost 10% of
respondents holding cryptoassets. They show that almost half of cryptoasset users hold
less than £100 in cryptoassets, and that the most common reason for purchasing
cryptoassets is as a gamble.
This is a continually changing market and we will continue to monitor its development.
We will use the results from this survey, along with other sources to assist with
developing further regulation of cryptoassets.
Whilst this research shows an increasing awareness of cryptoassets and ownership levels
within the United Kingdom, it should be noted that cryptoassets remain a high-risk
investment, and anyone who looks to purchase them should be aware of the risks and be
prepared to lose all their money. Cryptoassets predominantly sit outside of the FCA’s
current regulatory perimeter and users of cryptoassets are unlikely to be covered by
financial protections such as the FSCS.

© Financial Conduct Authority 2020
12 Endeavour Square, London E20 1JN
Telephone: +44 (0)20 7066 1000 Website: www.fca.org.uk
All rights reserved

Research Note Cryptoasset Consumer Research 2023 Wave4

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Financial Conduct Authority

Research Note: Cryptoassets

Mercy Aju and Tim Burrell

FCA research notes in financial

The FCA research notes

Tim Burrell, Cross-Cutting Response, Partnerships and Research Department.

Public 8 June 2023 1

Public 8 June 2023 2

Public 8 June 2023 3

Public 8 June 2023 4

Public 8 June 2023 5

Public 8 June 2023 6

The research included three specific sample groups:

• Group 1: An initial screening question of a nationally representative random online

• Group 3: A longer version of the questionnaire was shown to an additional boost

Non-cryptoassets Cryptoassets Total

Group 2: Nationally 1849 303 2152

Group 3: Boost Sample - 1027 1027

Total 1849 1330 -

Public 8 June 2023 7

Equality and diversity considerations

Use of an online panel is a cost-effective way to reach a large number of respondents. It

Public 8 June 2023 8

Statistically significant differences

Public 8 June 2023 9

• HMT published a policy statement on cryptoasset promotions in February 2023, which

• Government published a further consultation 1 February 2023 on a wider regulatory

Public 8 June 2023 10

• We have supported 133 DLT-based innovations including those operating in the

• We are running ScamSmart and InvestSmart campaigns to warn retail consumers

In January 2022 we published three research notes on behavioural interventions to

Public 8 June 2023 11

Ownership and value

• The mean value of cryptoasset holdings is £1,595.

Public 8 June 2023 12

Experience of owning cryptoassets and areas of potential harm

• 15% of cryptoasset users purchased stablecoins.

Public 8 June 2023 13

• Social media is playing a more prominent role in cryptoasset advertising, especially

• A large proportion of cryptoasset owners (10%)13 believe they have greater

Awareness and understanding of cryptoassets

Chart 1: Have you heard of cryptoassets? (2020-2022)

Base (2022: 2337/, 2021: 2015/ 2020: 2068)

Public 8 June 2023 14

Chart 2: Have you heard of cryptoassets? (2022: By age and gender)

70% 75% 80% 85% 90% 95% 100%

Base (2022: 2337) Note, X axis not set to 0

Getting information – first hearing about cryptoassets

Public 8 June 2023 15

2020 2021 2022

Base 2022): 2152 respondents that have heard of cryptoassets

There is a significant increase in the number of younger adults hearing of cryptoassets

Online news, including blogs and forums (e.g.

Social media (e.g. Facebook, Instagram etc.)

Traditional media (TV, newspapers, radio etc.)

Traditional advertising (TV, newspapers, radio

0% 5% 10% 15% 20% 25% 30% 35%

2022 crypto users 2021 crypto users

Base: cryptoasset users (2022: 1330/ 2021: 1140)