Improved regulation would drive crypto investments, study finds

By Gaia Lamperti

Nearly a quarter (23%) of crypto investors, as well as digital currencies owners, would increase their holdings if regulation is tightened. Even people who never purchased cryptocurrencies declared that they would consider it in the case of improved regulations. These were the findings of a study commissioned by UK-based money app Ziglu.

The average amount investors would consider increasing holdings by is nearly £500, the research shows, and nearly 2 out of 3  adults (64%) say they would consider investing for the first time or boosting holdings. With around 1 in 10 adults currently owning digital currencies and 10% saying they have owned them in the past., a change in regulation to facilitate adoption would represent a major shift in the market and acceptance of cryptocurrencies.

Ziglu’s study, which was run by Consumer Intelligence interviewing a representative sample of 1,017 adults aged 18-plus in August 2021, suggests that increased regulation is crucial to the long-term future of the market. Ziglu offers current account services, FX, investments and also enables customers to buy and sell a range of cryptocurrencies, and the company is regulated by the Financial Conduct Authority and fully authorised as an Electronic Money Institution.

Its research found more than one in five (22%) of crypto customers and would-be customers want companies to offer better protection against hacking while around a fifth want guides to the market from companies in the sector.

Yet hurdles and distrust towards crypto remain. The biggest barrier to investing in the crypto sector remains price volatility,  more than half (52%) of people say they are deterred from investing by the risk of losing their money. As with any investment, capital is at risk.

Nearly half (46%) say they do not understand the market while more than a third (35%) are worried about the risk of scams. Around one in 10 (9%) are worried about the environmental impact of crypto mining.

“The cryptocurrency market has attracted support from a wide range of retail investors as well as major corporates,” said Mark Hipperson, Founder and CEO of Ziglu. “There is still understandable worry about the regulation of the market and that is reflected in the research and a concern we share at Ziglu.  Although the FCA does not regulate crypto itself, companies providing crypto services can be regulated and authorised by the FCA – we are at Ziglu. The crypto market needs to be better at protecting investors.”

Ziglu offers clients access to Bitcoin, Bitcoin Cash, Cardano, Chainlink, Dogecoin, Ether, Litecoin, Polkadot, Solano and Tezos free of charge. The company is one of the world’s first cryptocurrency platforms to comply with the Anti Money Laundering and Counter-Terrorist Financing standards set by Financial Action Task Force (FATF), implemented in over 200 jurisdictions.