Is the UK becoming the next Crypto Hub?

Paigambar Mohan Raj
Source: Outlook India

The UK has big plans with crypto. The nation has revealed that it wants to be a hub for the emerging industry. To find out more about the cryptocurrency market in the UK, a survey was commissioned by Her Majesty’s Revenue & Customs (HMRC). Kantar UK, a research agency, published the report.

One of the primary goals of the survey was to determine how common crypto investments were in the UK. Moreover, the study also aimed to find the types and amounts held and the platforms used. They had a sample size of 5,916 adults, with 713 crypto holders.

UK: a crypto-hodling country

The report says that only 19% did not know about cryptocurrencies. Nonetheless, 77% of the adult population recognized cryptocurrencies as digital assets that can be traded electronically.

Source: HMRC

A key takeaway was that a majority of investors in the UK have never sold their assets. This makes the UK a country of hodlers. As per the study, 10% of UK citizens hold or have held crypto in the past. Additionally, 55% of them have never sold. This is almost 5% of the adult population, as per the sample size.

Source: HMRC

Although the people of the UK are crypto-friendly, the country’s investment size is relatively small. 52% of investors hold crypto worth up to £1000 ($1200). The study says that only 7% hold assets worth more than £5000 ($6000).

Other significant findings

A majority of crypto holders were young. This comes as no surprise. Additionally, the majority are male. Furthermore, 63% reported making profits. While only 14% reported losses, and another 14% broke even. Also, 68% of investors acquire their assets from centralized exchanges.

The UK is keen on becoming a crypto hub. The nation has recently asked investors to comment on the taxation of cryptocurrency loans and staking. The government is interested in learning if administrative expenses and hassles for taxpayers participating in this activity could be decreased.

The UK does not want to be left behind in global crypto adoption. Of late, Dubai has become a Mecca for crypto-related businesses. Many nations around the world are eyeing similar ground. However, the UK could become a valid competitor if things go as planned.