Britons show interest in cryptocurrency for pension plans amid regulatory concerns
According to Cointelegraph, a recent survey conducted by the British insurance company Aviva found that approximately 27% of British adults are open to incorporating cryptocurrency into their pension plans. This interest indicates a potential shift in the UK pension fund market worth several trillion dollars towards digital assets. The survey, which involved 2,000 adults from the UK, shows that over 40% of those open to investing in cryptocurrency are motivated by the prospect of higher returns. Additionally, 23% of respondents expressed willingness to withdraw some or all of their existing pensions to invest in cryptocurrencies.
Despite growing interest, British adults face limited opportunities to integrate cryptocurrency into their pension funds. This development coincides with US President Donald Trump's signing of an executive order earlier this month allowing 401(k) pension plans in the US to include Bitcoin and other cryptocurrencies, thereby providing access to over $9 trillion in assets. The survey also highlights that approximately one in five British adults, equating to about 11.6 million people, have engaged in cryptocurrency investments, with two-thirds of them still holding digital assets. Notably, nearly one-fifth of adults aged 25 to 34 have already withdrawn pension funds to invest in cryptocurrency, significantly contributing to 8% of all respondents who reported the same.
Despite enthusiasm for investing in cryptocurrency, Britons remain concerned about the risks associated with digital assets. Security issues such as hacking and phishing attacks, as well as the lack of regulation and protection, are cited as the main concerns by 41% and 37% of respondents, respectively. The volatility of cryptocurrency is also noted as a significant problem for 30% of those surveyed. Michelle Golunska, Managing Director of Aviva Wealth and Advisory, acknowledges the appeal of investing in cryptocurrency but emphasizes the enduring benefits of traditional pensions, including employer contributions and tax benefits.
The survey also shows that nearly a third of respondents are interested in cryptocurrency but acknowledge that they do not fully understand the potential benefits they might miss by withdrawing their pensions. Meanwhile, 27% are unaware of any risks associated with investing in cryptocurrency. The UK is cautiously advancing its cryptocurrency regulation, proposing a framework in May that aims to treat cryptocurrency exchanges, dealers, and agents the same as traditional financial companies, with strict compliance checks focused on transparency and consumer protection. However, UK banks seem to be slowing adoption, as 40% of recently surveyed cryptocurrency investors reported that their banks blocked or delayed payments to cryptocurrency providers.