How Much Do Brits Know About Crypto Market Investments?

The digital asset market has seen its fair share of resistance since its debut, but the United Kingdom is one of those countries that allowed its use since its earliest days. UK-based companies have been accepting BTC for payment for several years, and over ten crypto-friendly banks are operating legally in the country. However, despite these adoptions, it is only possible to quantify an asset's usage and acceptance by knowing the citizen's interests in such assets. This would include knowledge, level of education, usage, and investments.

This article explores the current state of crypto knowledge, relevance, and adoption amongst Brits living in the United Kingdom.

Cryptocurrency Adoption in the United Kingdom

Since its introduction, the United Kingdom has presented itself as a crypto-friendly country with a standard regulatory framework and policies. The Financial Conduct Authority (FCA) is the UK's leading regulatory body for these digital assets. Over the years, this body has ensured that crypto service providers conduct transactions under strict anti-money laundering and counter-terrorism financing policies. These acts have come in handy for investors in the region, with the exposure to safer transactions. Crypto usage in the UK is completely legal, and as of 2021, Brits held the second highest level of crypto awareness in Europe, as revealed by Yahoo Finance.

As of September 2024, the country is ranked 11th in the 2024 global crypto adoption index. In 2021, the FCA published research showing that 2.3 million people in the UK owned some form of cryptocurrency. This number has increased dramatically since this first release. As of July 2022, 10% of UK adults said they hold or have some digital assets. By June 2023, the number of people holding these assets had risen to 4.97 million.

The UK's strong interest in crypto positions it as a central player in the industry. The country plans to further regulate these assets and solidify stablecoin adoption. The adoption of cryptocurrencies has increased in the United Kingdom, and the island country has expressed a keen interest in engaging with the modern financial market.

Are Brits Crypto-Savvy?

Although the numbers above seem on the higher end, crypto adoption is most common amongst younger generations, especially those under 35. The Financial Services Compensation Scheme (FSCS) published an insight on attitudes towards crypto investments in April 2023. One of the key findings in this research is that only 11% of UK adults understand how these assets work, with the number increasing to 23% among those under 35. While the FCA showed an increase in investment, it also backs up the findings of FSCS, stating that the level of understanding is declining, and some users may need to be fully aware of what they are buying. The knowledge barrier is an existing concern for this industry in the United Kingdom, and we can conclude that the percentage of crypto-savvy Brits is relatively low and declining.

Educational Resources for Brits in the UK

Several surveys have shown that education and understanding are vital limitations hindering investments in the UK. For example, the study conducted by the Association of Investment Companies (AIC) on barriers to crypto investments reports that 57% of young people say that a lack of understanding and adequate knowledge is one of the most significant barriers to investing. The crypto market is a complex financial space that is highly volatile. It also comes with risks that make buyers wary. With a lack of more in-depth understanding, fewer people are taking this leap of faith in modernised finance.

The United Kingdom has several resources, from formal university courses to online tutorials, events, and seminars. Institutions like universities and specialised organisations offer classes on blockchain and cryptocurrency. In addition, platforms like Coursera and Udemy provide accessible content for beginners. At the same time, social media influencers, online communities, and brokerage systems like Crypto OANDA play a significant role in offering further insight.

However, while there are enough educational resources to guide potential investors in making the right decisions, the complexities and risks reduce people's interest in dabbling in the market. In addition, more of these individuals are concerned about the lack of protection in the space. The FCSC report supports this claim, stating that 48% of consumers still hesitate to invest in crypto assets for safety reasons.

Boosting UK Crypto Investments Through Education

Cryptocurrency investment in the UK is widespread, with over half the population familiar with the assets. However, awareness alone doesn't guarantee engagement. Learning about crypto assets might have been more complex in the past, but social media has simplified access to information. Despite this, the UK government faces regulatory challenges. Investors are seeking assets that are safe, well-regulated, and constantly monitored. The future of the UK crypto market may depend on striking a balance between accessibility and robust regulatory frameworks to instil confidence and attract more investors.