The research, conducted among 2681 consumers by YouGov, found a 1.1 million spike in uptake since the FCA completed a face-to-face survey on the same topic last year. Of the 1.9 million that still hold their cryptoassets - such as bitcoin, ripple or ether - half have more than £260.

The research forms part of the FCA’s work alongside the Government and Bank of England to understand market size, consumer profiles and attitudes towards cryptoassets.

The study found that the majority of cryptoasset owners are generally knowledgeable about the product, are aware of the lack of regulatory protection afforded and understand the risk of price volatility.

However, an estimated 300,000 cryptoasset owners believe they have protection, which leaves them at potential risk of financial harm.

Of those who purchase cryptoassets, 83% do so through non-UK based exchanges.

The FCA’s interim executive director of strategy and competition, Sheldon Mills, says: "This FCA report reveals the increasing popularity of cryptoassets among the UK consumer population and underlines the importance of our work to gain a deeper understanding of this market and how people interact with these assets.

"Cryptoassets present risks and opportunities for consumers and we hope these insights will help inform the policy debate in the UK and internationally as the use of these assets continue to grow."

In its March 2020 budget, the Government said it intends to consult on measures to bring certain cryptoassets into scope of financial promotions regulation. A policy statement is due this year following a consultation on banning the sale of certain cryptoasset derivatives to retail investors.