According to an ASIC survey, only 20% of cryptocurrency owners consider their investment approach to be risky, while the rest do not fully understand the risks of investing in digital assets.
Australian Securities and Investments Commission (ASIC) Chairman Joe Longo spoke out about the sheer number of people who have invested in what he said are unregulated and volatile crypto assets during the pandemic. He cited a November 2021 study that examined investor behavior after the start of the COVID-19 pandemic.
According to the results of the study, cryptocurrencies were the second most common investment product, with 44% of those surveyed reporting that they own them. Of these, 25% indicated that crypto assets were the only investment class they were invested in. According to Longo, the study highlights the attractiveness of crypto assets for investors, but they may not know what risks they are taking.
“According to the survey, only 20% of cryptocurrency owners consider their investment approach to be risky. This raises concerns that investors do not understand the risks associated with this asset class. Investor protection in this industry is very limited, and there is a lack of understanding among investors about the risks they are taking. This is a weighty reason to strengthen the regulation of the industry,” he said.
Currently, digital currency trading in Australia is superficially regulated, but many cryptocurrency firms are in favor of full regulation. Thus, according to the CEO of the Australian division of the Binance cryptocurrency exchange, Leigh Travers, tightening regulation of the industry will create higher standards for companies.
Source: Bits
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