Most UK consumers don't understand cryptocurrencies. Among the small number who have invested, few researched before buying. That's the picture painted by a Kantar TNS study released this week by the
Most UK consumers don't understand cryptocurrencies. Among the small number who have invested, few researched before buying. That's the picture painted by a Kantar TNS study released this week by the Financial Conduct Authority.
Seven in ten UK consumers surveyed couldn't define cryptocurrency or said they don't understand it. Men between 20 and 44 showed the highest awareness of the technology.
The FCA found that 3% of consumers surveyed have purchased cryptoassets. Of those who bought, 8% did any research beforehand. Over one in three have not examined their holdings' value since purchasing.
Christopher Woolard, the FCA's executive director of strategy and competition, sees the results as reassuring. "The results suggest that although cryptoassets may not be well understood by many consumers, the vast majority don't buy or use them currently," he said. "Whilst the research suggests some harm to individual cryptoasset users, it does not suggest a large impact on wider society."
Woolard issued a stark caveat. "Nevertheless, cryptoassets are complex, volatile products – consumers investing in them should be prepared to lose all of their money," he warned.
Among consumers without cryptoassets, appetite for buying remained minimal. Only 7% said they might consider purchasing in the future.
A separate Revealing Reality study examined the psychological and social factors driving crypto purchases. Skepticism toward mainstream media, personal worldviews, and trusted information sources all shaped whether consumers bought crypto and what they did afterward. One influential acquaintance's recommendation or a compelling online post about easy profits could move someone to invest.
Consumers often viewed crypto as one piece of a broader income strategy, alongside other side hustles. Many wanted quick money with minimal work, seeking what they saw as an intelligent shortcut to wealth.
The FCA has repeatedly warned that crypto is volatile and risky, with many tokens falling outside UK regulation. Consumers lack recourse through official complaint channels or the Financial Services Compensation Scheme if their investment fails. The FCA, working with the government and Bank of England under the UK Cryptoassets Taskforce, is assessing and addressing these risks.
The FCA is consulting on guidance to clarify which cryptoassets fall under current regulatory rules. HM Treasury is examining legislative changes that could expand the FCA's oversight to cover additional asset types. Later this year, the FCA plans to consult on restricting the sale of certain crypto derivatives to individual investors.
Vaibhav Kadikar, CEO of derivatives platform CloseCross, sees the study as a portrait of an industry still finding its footing. "The report should neither encourage nor discourage anyone within the entire financial industry, from incumbents to startups, from entering the space," Kadikar said. "At this early stage, the space is mostly dominated by visionaries and early-adopters. While mainstream companies and developers may be tempted to wait until the technology has been embraced by the masses, in this fast-moving world that may be too late."
