Increasing number of UK citizens getting glued to cryptos: Coinbase report

Highlights

• Coinbase conducted a study that showcased the number of Brits who have bought crypto has gone up from 4% to 33% since October last year.
• Approximately 52% of the UK citizens surveyed found a particular liking to Ethereum, while few others leaned on Dogecoin (DOGE) and Binance Coin (BNB).

The United Kingdom of late has been focused on making the country a crypto hub. Even though the regulators still have their reservations about the safety and security of crypto investment, it isn’t deterring the UK citizens from riding on the crypto wave by investing in it.

The crypto adoption was set much before Chancellor Rishi Sunak unveiled plans to transform the UK into a “global hub” for crypto assets. In fact, according to a Chainalysis report, Britain, for some time now, has been one of the hotbeds of crypto adoption, with the majority of transactions within the Europe region happening in the UK.

Also, Chainalysis data indicate that between June 2020 and July 2021, there was about US$170 billion worth of transactions done in cryptos. The volumes have largely been driven by the decentralised finance (DeFi) with large and institutional traders playing their part in generating transaction volumes. 

Also read: The US$100-bn flash crash: Why are cryptos crashing today?

One of the leading crypto exchanges, Coinbase, echoes similar sentiments, indicating that the number of Brits adopting cryptos is increasing by the day. Coinbase conducted a study that showcased that the number of Brits who have bought crypto has gone up from 4% to 33% since October last year.

Bitcoin, the more popular crypto holding

In the United Kingdom, more than 67 million citizens either own cryptos or are thinking of crypto investment in the future. Naturally, Bitcoin continued to rule the roost, despite its recent bearishness, for those who hold the digital assets. Approximately 52% of the UK citizens surveyed found a particular liking to Ethereum, while few others leaned on Dogecoin (DOGE) and Binance Coin (BNB).

The report from Coinbase, carried out by Qualtrics, highlights that today, a huge number of UK citizens are well exposed to the concept of cryptocurrencies. The report adds that many citizens today are keen to expand their portfolios and are more open to exploring the crypto domain.

Also read: Why is Council of Europe calling for strict crypto regulation?

Contrasting opinions remain

Coinbase’s report, however, contradicts several surveys done by other firms. In fact, according to a Finder’s Cryptocurrency Adoption Index, the number of UK citizens adopting crypto is significantly lower. Finder report concluded that in UK the percentage of citizen who either own cryptos or are in the process of adopting it is somewhere around 11.2% on an average.

Meanwhile, CoinCorner’s Danny Scott believes that Coinbase’s stats are significantly higher, considering the market is witnessing a quiet period. However, Scott was quick to point out that rather than taking it negatively, one needs to be positive and see it as an opportunity to build the infrastructure for the next wave.

All in all, despite the increased adoption and contrasting opinions, the Financial Conduct Authority is keeping a strict vigil on digital assets. The FCA wants to ensure that all the crypto businesses are in line with the regulatory rules to ensure that consumers are not on the losing end of the bargain.

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