Agile Project: Enhancing Consumer Knowledge of Crypto Assets

Completed Project Case Study: Enhancing Consumer Knowledge of Crypto Assets

Summary

Crypto assets have grown rapidly in popularity, offering both exciting opportunities and serious risks. While more people are investing, many lack the knowledge to understand what they are buying or the potential consequences. This lack of awareness undermines trust and creates vulnerabilities to scams, financial crime, and misinformed decisions. To address this gap, UKFin+ funded an agile project led by Dr Dimitrios Kafteranis (Coventry University), Dr. Geetika Jain (Keele University) and Dr. Dr Yllka Hysaj (Imperial College London), working in collaboration with Fintech West, a committed industry partner. Together, the team set out to investigate consumer understanding of crypto assets and explore strategies to improve financial literacy in this fast-evolving area.

The Challenge

Despite the surge in crypto adoption, consumer protection remains limited. Many retail investors are unclear on the risks, from fraud and money laundering to tax obligations. Regulation is fragmented, and policies to strengthen awareness are often behind market developments. Without greater knowledge and trust, the safe and sustainable development of crypto markets is at risk.

The Research Approach

The project combined empirical research and policy analysis. Researchers conducted interviews with consumers to uncover gaps in awareness, misconceptions, and lived experiences with crypto assets. Thanks to Fintech WA’s active support, the team was able to connect with willing interviewees from the industry and consumer groups. Alongside this, the academics reviewed the existing legal and regulatory frameworks, assessing how far current policies address the risks facing consumers.

Key Findings

The early findings reveal widespread gaps in consumer knowledge:

Low levels of awareness among retail investors.

Common misconceptions, including misunderstandings about tax obligations and the scale of financial crime risks.

Exposure to scams and fraud, with limited protection for victims.

Regulatory uncertainty, as legal frameworks are still evolving and lack clarity.

These insights highlight the urgent need for improved financial education, clearer policy guidance, and better engagement between regulators, industry, and consumers.

The Impact

The collaboration delivered benefits for both academia and industry. For researchers, the partnership with Fintech West bridged theory and practice, providing real-world perspectives that enriched the analysis. For the industry partner, the findings offer a clearer picture of consumer vulnerabilities and an evidence base to shape future educational initiatives and responsible innovation in the crypto space.

What Happens Next

The team is finalising a detailed report that will be shared publicly. It offers recommendations for policymakers, industry leaders, and educators. Building on this foundation, the researchers are considering larger projects to design tools and frameworks that can raise awareness and strengthen trust in crypto assets.

This project takes an important step towards safer, more responsible consumer participation in the crypto economy by highlighting the knowledge gap.

Completed Project Video

Following the completion of the project Dr Dimitrios Kafteranis has shared his findings and experience collaborating with thier non – HEI partner.

Original Project Summary

The proposed project, in consultation with our non-academic partner, seeks to address the critical issue of consumer knowledge regarding crypto assets. The rapid growth of crypto assets has brought new opportunities and challenges for consumers. With the increasing popularity of crypto assets, there is a pressing need to enhance consumer knowledge to ensure responsible and informed participation in this evolving financial landscape. While crypto assets are becoming increasingly prevalent, a majority of consumers remain unaware of the associated risks. This creates an obstacle to the safe and sound development of crypto assets as the trust element may be missing. In navigating this dynamic financial landscape, it is crucial to ensure that consumers engage responsibly and make informed decisions. This proposal aims to conduct empirical research (interviews) and policy analysis to shed light on the gaps in knowledge and governmental policies governing consumer awareness of crypto assets. This research endeavours to explore strategies that effectively contribute to augmenting consumer knowledge of crypto assets. In addition, this proposal seeks to address the critical issue of consumer knowledge and trust in the crypto landscape by conducting empirical research and policy analysis.