Thread by @Saad_Alrayes

1/14 These critical threads highlight key points on the latest FCA 'Research Note: Cryptoassets consumer research 2023'; revealing a significant increase in #cryptoasset ownership in the #UK, with 9% of adults (4.97m) owning cryptoassets in 2022; highlighting the growing adoption

2/14 The research highlights that 15% of #cryptoasset users have purchased #stablecoins. This indicates that stablecoins, which are designed to minimise price volatility, have gained traction as a popular choice among #crypto investors. #CryptoassetsOwnership

3/14 A noteworthy is that 28% of non-cryptoasset users stated they would be more likely to buy #cryptoassets if the market & activities were regulated. This underscores the potential impact of regulation on consumer behaviour & the importance of creating a regulated environment.

4/14 The awareness of #cryptoassets among #UK adults has significantly increased, with 91% having heard of them in 2022, compared to 78% in 2021. This growing awareness suggests that cryptoassets have become a mainstream topic & are no longer limited to a niche audience.

5/14 Despite the lack of regulation, 55% of #cryptoasset owners reported being happy trading in the market. This finding raises questions about the perceived benefits of a regulated market & whether individuals are willing to trade in a space that lacks formal oversight.

6/14 The FCA's research indicates that a considerable portion of #cryptoasset owners (39%) hold their assets for 1-2 years on average, while nearly 40% hold less than £100 in cryptoassets; suggesting a diverse range of investment strategies & varying levels of involvement.

7/14 Concerningly, 46% of surveyees reported that their #cryptoassets were worth less than the initial purchase value, highlighting the potential risks & volatility associated with cryptoassets. This underscores the need for awareness of the potential for financial loss.

8/14 The primary reason for purchasing #cryptoassets remains 'as a gamble' for 40% of investors. This perception of #crypto as a speculative investment underscores the need for investor education on the risks involved & the importance of making informed decisions.

9/14 The role of advertising in shaping consumer behaviour is evident, with 36% of adults having seen or heard #cryptoasset adverts. 25% of non-cryptoasset users became curious after exposure to advertising, This rasing the influence of marketing efforts in driving adoption.

10/14 Regulation remains a factor that could sway consumer behaviour, with 28% of non-cryptoasset users stating they would be more likely to buy #cryptoassets if the market & activities were regulated; indicating regulatory frameworks can enhance trust & attracting participants.

11/14 The research underscores the risks associated with #cryptoassets, including the potential loss of money. It is concerning that 6% of cryptoasset users buy them using credit or borrowed money, highlighting the potential for financial vulnerability & debt accumulation.

12/14 Regret over purchasing #cryptoassets was expressed by 14% of those surveyed; highlighting the need for individuals to carefully consider their investment decisions; education is key to preventing impulsive or uninformed decisions.

13/14 From these results, several key points can be gleaned: * the public is still navigating their understanding of this emerging asset class, primarily perceiving it as speculative. Regulators are closely monitoring this trend. #CryptoassetsResearch

* Despite landmark scandals like #FTX, the transformative effect on public perception remains limited, emphasising the need for continued education & awareness about the risks associated with #cryptocurrencies. #CryptoassetsScandals

* It's concerning to find that some investors are using funds they don't have or can't afford to invest in cryptocurrencies. Responsible investing is crucial to safeguard financial well-being. #CryptoassetsInvestment

* While regulation plays a vital role, it's important to acknowledge that it may not be a one-size-fits-all solution for addressing all challenges in the crypto market. A holistic approach is necessary. #CryptoassetsRegulation

* Despite ongoing debates, the interest in cryptocurrencies persists, with people recognising the potential benefits they offer amidst economic uncertainties & perceptions of fairness in traditional finance. #CryptoassetsBenefits

* As the crypto market grows, it's crucial to be vigilant about potential risks & vulnerabilities, ensuring robust measures to prevent financial crime & exploitation. Collaboration is key. #CryptoassetsSecurity

* The FCA's research highlights the importance of investor education & awareness to prevent regretful investment decisions in #cryptocurrencies. Knowledge is power in this evolving landscape. #CryptoassetsEducation

* Let's remember that while #cryptocurrencies bring opportunities, they also pose risks. Striking a balance between innovation & investor protection is crucial for sustainable growth. #CryptoassetsBalance

* The FCA's research sparks a vital conversation on #cryptoassets, urging regulators, industry participants, & investors to work together towards responsible & informed practices in this evolving financial landscape. #CryptoassetsDialogue.

* The FCA's findings reveal the need for ongoing research, regulation & market vigilance to ensure a fair, transparent, & well-functioning #crypto ecosystem. Let's strive for a resilient future. #CryptoassetsFuture

14/14 Overall, these findings underscore the need for investor education, effective regulation, & ongoing research to ensure that individuals can make informed decisions regarding #cryptocurrencies while mitigating potential risks & fostering a fair & transparent market.