Nearly 7% of Spaniards Are Crypto Investors: Report
- The Spanish financial regulator (CNMV) is worried about the increasing number of crypto investors despite its ad warnings earlier in the year.
A recent study by Spain’s securities market regulator (CNMV) says up to 6.8 percent of Spanish residents are crypto investors. The study states that many are investors because they believe in blockchain technology and have a hope of making profits from their investments.
The CNMV study is a follow-up to its clampdown on crypto-related ads earlier in the year. The ban became necessary to prevent many with little knowledge about crypto from investing. An increasing number of Spaniards were starting to invest in crypto following ads from influencers, including important sports personalities such as former FC Barcelona star, Andres Iniesta.
Ninety percent of the poll participants recalled that they saw ad warnings about crypto investments. However, the regulator said it is concerned that there isn’t enough awareness about risks in crypto investments. While the European Union has a licensing procedure for cryptos (the markets in crypto assets regulation, mica) across the region, the procedure won’t take effect until 2024.
Closer Look at Spanish Crypto Investors
The MiCA is the first properly-recognized crypto regulatory framework globally. Meanwhile, crypto firms can register in the nation so long they can prove that they will comply with its anti-money laundering policies. That was why moon tech Spain (a Binance subsidiary) was able to register in the country last month.
The study took place between May and June 2022 and was conducted in collaboration with Analisis e Investigacion and 1,500 adults participated in the study. The report noted that 40 percent of the survey participants assume that the government law regulates cryptos.
Also, 20 percent think crypto investments have similar risks to other types of investments. The study also discovered that 50 percent of those interviewed easily understood the crypto ads warnings, and the letterings were big enough. Apart from Spain, other authorities are also taking similar steps. The Monetary Authority of Singapore has banned the use of any form of media to promote crypto products and services.
In the meantime, popular credit rating firm, Moody’s, has stated that crypto regulation would promote financial stability and make the industry more efficient since global regulators decide what’s best for the industry. The financial service firm’s latest report stated that clear crypto regulations would guide crypto firms which would boost investor protection.
Also, it would ensure that there aren’t any financial instabilities in the industry. Hence, there are likely to be fewer inefficiencies in the industry. The report added that clarity on crypto regulation would showcase the potential benefits of the crypto industry. Many authorities are still working on how to provide oversight functions over the crypto industry.
Moody’s said effective crypto regulation would be important in achieving international consistency in supervisory approaches over the industry. The report also highlighted that crypto regulation doesn’t mean stifling innovation in the industry, which has been a major concern for many crypto players. Despite various attempts by the UK, Hong Kong, Seoul, and many others, Dubai currently leads the race in being a global hub for crypto activities.