UK crypto market survey: 13 mln new customers kept away by low trust

A quarter of UK adults declared they would be willing to invest, or invest more, in crypto if they could be reassured about their security concerns around the market. Without enhancing security measures, crypto businesses are at risk of failing to fulfil their potential and competing on a global level. 

Consumers have hinted that security concerns are a priority – almost half (45%) believe that crypto will never become mainstream unless security and regulation are improved. TMT Analysis is a company specialised in providing intelligence on mobile numbers globally. Figures provided by the FCA exclusively to TMT Analysis reveal that only 12% of crypto asset firms that applied for registration under money laundering regulations were approved in the first 12 months since FCA authorisation became a requirement.   

There remains considerable scepticism amongst potential investors which is holding back market growth – over half (54%) of UK adults distrust cryptocurrencies as they don’t believe the security processes in place are robust enough to protect investors, similarly, almost two thirds (63%) of UK adults aged over 55 are concerned over the security measures of crypto exchanges, compared to under half (42%) of 18-34 year olds.  

Over half (53%) of UK adults admit they still do not know anything about cryptocurrencies, despite the UK crypto market hitting USD 170 billion, according to Chainalysis.    

Crypto-crime hit a record high in 2021, rising 79% from USD 7.8 billion to USD 14 billion (Chainalysis figures show), fuelling concerns among the public; four in ten (41%) survey respondents think that there is more fraud in the crypto industry than anywhere else in financial services – the figure rises to almost half of men (46%) and over a third (36%) of women.