Recently, the European Central Bank has become very outspoken about cryptocurrencies. Notably, a survey conducted by a leading financial body found that 10% of households in the eurozone own crypto assets.

A recent survey conducted by the ECB on Tuesday found that one in ten households in the EU owns cryptocurrencies. The survey is part of the ECB Consumer Expectations Survey, the results of which were obtained by evaluating data from six countries.

According to the data, the majority of cryptocurrency holders reported holding less than 5000 euros in crypto, while 6% of those holding more than 5000 euros admitted to holding more than 30 euros in crypto. The data also showed that well-educated respondents were more likely to invest in Crypto-currency.

However, the ECB is not happy with this development, as stated in its latest Financial Stability Report. According to the ECB, most retail investors do not invest in or trade cryptocurrencies.

“Crypto assets are not suitable for most retail investors (neither as an investment, nor as a store of value, nor as a means of payment), who can lose a large amount (or even all) of the money they invested,” the report says.

Meanwhile, the rise in retail crypto investment has not been the only trend that has raised concerns among the European central bank. The ECB also expressed concern about the increased participation of institutions in the emerging market, citing the risks of loss of capital and investor confidence. In addition, the report stated: “If current growth trends and market integration continue, then crypto assets will pose a risk to financial stability.”

Calls for regulation

After all these concerns, the ECB called for regulatory action, noting that it had risen to the level of global concern, even as it stated that crypto lending could be subject to existing financial rules, citing cases in the US. “Therefore, it is critical for regulators and supervisors to closely monitor developments and address regulatory gaps or arbitrage opportunities. Because this is a global market and therefore a global issue, global regulatory coordination is needed,” the report says.

It is noteworthy that the EU is already preparing its regulatory framework for Crypto Asset Markets (MiCA), which moved into the trilogy stages in March.

“Both in absolute numbers and relative to GDP, Europe is the region with the highest crypto asset activity. One of the many reasons why EU institutions should embrace crypto rather than fear it. This time, we could really be a technology leader,” he wrote. Twitter Patrick Hansen, Cryptocurrency Venture Advisor and Stakeholder, urging European legislators to create favorable rules, taking into account the numerical advantage of the European Union.

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