More Regulated Crypto Market Could Reassure Investors

To gamble on crypto, or not to? That has been the question in 2021 and perhaps the answer would be swayed by tighter regulation in 2022? Another solution could be insurance against initial stake losses via fraud or State actors seizing digital assets.

Improved regulation of the crypto market and the companies involved would encourage customers to invest more or invest for the first time, new research from UK-based money app Ziglu shows. Its study found nearly a quarter (23%) of crypto investors and people who have never bought digital currencies would either increase their holdings or put in money for the first time if regulation is tightened.

The average amount they would consider investing or increasing holdings by is nearly £500, the research shows, and nearly two out of three adults (64%) say they would consider investing for the first time or boosting holdings. That would represent a major shift in the market and acceptance of cryptocurrencies – Ziglu’s research shows around one in 10 adults (9%) currently own digital currencies while 10% say they have owned them in the past.

Ziglu, which offers current account services, FX, investments and also enables customers to buy and sell a range of cryptocurrencies, believes increased regulation is crucial to the long-term future of the market. Ziglu 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.

However, 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.

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.

Mark Hipperson, Founder and CEO of Ziglu said: “The cryptocurrency market has attracted support from a wide range of retail investors as well as major corporates.

“There is still understandable worry about 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.”

About alastair walker 9688 Articles
20 years experience as a journalist and magazine editor. I'm your contact for press releases, events, news and commercial opportunities at Insurance-Edge.Net

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