The average UK crypto asset holder would be young, male and hodler. And they would consider cryptocurrency to be a “fun investment.” These are the results of a recent study conducted by Her Majesty Revenue and Customs (HMRC) with the help of research agency Kantar UK and published on Tuesday.
Using a quantitative approach, the study sought to establish the prevalence of crypto asset holdings, their types and amounts, and the platforms people use to purchase crypto assets. It consisted of a survey with a representative sample of 5916 adults in the United Kingdom, including 713 crypto asset holders.
The report showed that 10% of UK citizens own or have held cryptocurrencies, while 55% have never sold anything (equivalent to 5% of the adult population). Only 7% currently own assets worth more than £5,000 (nearly $6,000 at press time), while 52% of current owners own assets up to £1,000 ($1,200).
Related: UK government seeks public opinion on DeFi taxation
Other important findings did not come as a surprise: cryptocurrency holders tend to be younger than the general population: 76% of them are 45 years old, and they are mostly men (69%). The vast majority of them own cryptocurrencies (79%), with the second most popular asset type being utility tokens (20%).
An important finding relates to the overall trading model – 68% of holders most often purchase cryptocurrencies on “centralized exchanges”, while 81% use these exchanges to sell or exchange their assets.
The majority of holders reported making a profit (63%) over the past year when selling crypto assets, 14% said they suffered a loss, and similarly, 14% said they break even. Since the survey was conducted between February 2021 and June 2021, these data should be attributed to 2020.
On July 5, HMRC called for an evidence document describing its intention to explore whether administrative issues and costs can be reduced for taxpayers involved in the crypto industry.