Research has disclosed that lack of regulation and unproven returns deter 75% of adults from investing in cryptocurrency.
The YouGov survey, which took place in April 2022 asked 2,116 adults in the UK about their interest and preferences in cryptocurrency.
The new research is significant as the global cryptocurrency market value is projected to grow over 58% in the next 5 years to reach USD$32,420 Billion by 2027. With the rise in digital asset investment and understanding, it is becoming increasingly important for cryptocurrency brands to offer a trustworthy and regulated approach to new users who are tempted to experience the shifting financial landscape but don’t wish to compromise the security of existing financial assets.
The research further indicated that 32% of adults would be more likely to invest in cryptocurrency if it were part of a regulated exchange and potential returns were proven. Regulation for crypto brands has been a notable concern for potential buyers, as crypto audiences expand to not only financially aware adults but anyone with disposable income keen to see a strong return.
Dan Da Rosa the CEO and co-founder of ETHAX, a new cryptocurrency business that enjoys fully licensed and regulation says a crypto brand that installs legitimacy and quality has a massive potential of attracting investors.
“We are excited to launch a unique licensed and regulated platform that opens up the crypto market to new investors whilst offering a trustworthy, technology-driven, professional platform,” Da Rosa said. ETHAX was launched in 2021.
The same survey revealed that 35% of respondents aged 18-34 said they would not invest in cryptocurrency due to it being less regulated than other currencies. This demonstrates a growing audience of young, financially independent people who understand the importance of licence and regulation within digital asset investments.
With values shifting focus, regulation of cryptocurrency brands will be a key motivator in the coming years to maintain an industry swell and brand success rather than unlicensed brands, by nature, turning off potential investors.