Tighter regulation of the cryptocurrency market and the companies involved would encourage investors to invest more or for the first time in the asset class, new research has shown.
A study by UK-based money app Ziglu found that around one in 10 adults currently hold digital currencies, a number which would increase if restrictions tightened and the threat of hacking was minimized.
The survey, which questioned peoples’ future intentions surrounding cryptocurrency investments, found that 23% of crypto investors and adults who have never invested in digital currencies before said they would consider increasing holdings or investing for the first time. This is purely conditional, however, on improved industry regulation.
With a commitment to change in place, 64% of adults said they would consider boosting holdings or becoming first-time investors in cryptocurrencies, with £500 the average amount they would consider investing or increasing holdings by.
The biggest barrier surrounding cryptocurrency investment remains price volatility, with the survey having found that 52% of people are deterred from investing out of fear of losing their money.
The research also showed that 46% of adults do not understand the market, with around one-fifth of those surveyed saying that they want guides to the market from companies in the sector.
More than one-third at 35% are worried about the risk of scams, with 22% of crypto customers and would-be customers saying they want companies to offer better protection against hacking.
Mark Hipperson, founder and CEO of Ziglu, said: “Although the FCA does not regulate crypto itself, companies providing crypto services can be regulated and authorised by the FCA.
“The crypto market needs to be better at protecting investors.”
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