A study by Finder.com suggests 5% of British adults — about 2.7 million people — currently own digital assets. Last year, that figure was closer to 9%.
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Cryptocurrency adoption has fallen sharply in the U.K., according to new research.
A study by Finder.com suggests 5% of British adults — about 2.7 million people — currently own digital assets.
But that's a dramatic decline from the 9% who said they were investors during the height of the bull market.
Millennials were most likely to own crypto, as opposed to just 2% of baby boomers.
Finder's cryptocurrency editor, James Edwards, warned that gaining exposure to digital assets does come with risks. He said:
"The last few years have demonstrated just how volatile the industry is, so you should never invest money you can’t afford to lose. Even if you're using an exchange to buy and sell your crypto, it's a good idea to store your digital assets on a hard wallet to which you alone hold the private keys."
Over the past 12 months, the U.K. has been seeking to position itself as a global cryptoasset hub — and unveiled plans to make stablecoins a valid payment method.
That prompted Tether to announce that it was launching a new stablecoin that would be pegged to the British pound.
The government has been facing calls to embrace digital assets, amid optimism that it could offer the U.K. a competitive advantage following the vote to leave the European Union.
But some politicians have expressed concerns over the volatility of cryptocurrencies — amid fears everyday consumers trying to make money during the cost of living crisis could actually end up in a worse financial position.
The crypto industry in the U.K. has also been dealt a blow after a number of mainstream banks announced they would limit purchases of digital assets through exchanges — in the form of daily and monthly caps.