29.6% consider that they have the same risks as any other asset, according to a study by the CNMV. Advertising warnings make half of the investors reflect on their position.

Investment in cryptocurrencies is an undeniable fact, to which regulators have found it necessary to respond, so far, however, with little incidence.

In Spain, to cite an example, so far only the regulations governing their advertising have been developed so that advertisers clearly warn private investors of the risks. Nevertheless, the community regulations that address the treatment of crypto assets and offer their investors the guarantees that do apply to other types of investment assets, are still pending.

Results of the CNMV Study

Pending this regulation, the CNMV (The National Securities Market Commission, located in Spain) is concentrating its efforts on warning of the risks, with a discreet result for the moment, according to the study published today by the regulator on cryptocurrencies and the effectiveness of the measures promoted so far.

The penetration of these assets among investors is still low. According to the survey commissioned by the CNMV for the preparation of the study, only 6.8% of those interviewed have ever invested in cryptocurrencies.

In addition, only 9% of them dedicate a fixed monthly allocation to this type of asset, which represents, in any case, less than 5% of their capital. Of the current investors, just over half, 52% do so occasionally when there are falls in the value of this currency or they have money to invest.

The study reveals a striking fact, as recognized by the CNMV. Thus, 40% of investors in cryptocurrencies believe that they are regulated by law and 29% consider that they have the same risks as any other investment.

These are significant percentages, which show the lack of knowledge that still exists among the investment community in crypto assets, more familiar with this type of asset than the general population, and which can therefore be the focus of unexpected losses.

Warning about Risks when Investing in Cryptocurrencies

According to the study, the didactic work of the regulators, which has joined the efforts of the CNMV, the Bank of Spain and the Government itself, to warn about the risks of investing in cryptocurrencies is already giving some results, although also with limitations.

Advertising warnings about the risks have been effective in giving at least half of investors pause. 32.4% of cryptocurrency investors do admit to having searched the internet for more information about cryptocurrencies and their risks after seeing the warnings contained in the advertisements. However, 49.3% acknowledge that they do not react in any special way after learning about the warnings.

Three Reasons Reported to Invest in Cryptocurrencies           

Among the most frequent reasons chosen to invest in cryptocurrencies, the search for high profitability stands out, followed by the consideration of these as a means of payment for the future and that the technology on which they are created is trusted. This third reason is significantly higher among young people under 24 years of age, according to the CNMV.

Even so, 61.3% of cryptocurrency investors recognize that they have a high speculative degree, while 17.3% fully agree that the liquidity of cryptocurrencies is scarce, so it is sometimes not possible to sell at the desired time and significant losses can be suffered.

By Audy Castaneda


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