IOSCO Calls for Increased Investor Education Amid Growing Retail Crypto Ownership

Retail Crypto Ownership Surges Post-2020, IOSCO Pushes for Better Education

The Board of the International Organization of Securities Commissions (IOSCO) has urged for further investor education about the space, citing a notable increase in cryptocurrency ownership among retail investors since 2020. According to research released by IOSCO on October 9, 15 out of 24 jurisdictions polled indicated that at least 10% of retail investors held cryptocurrency last year, and six jurisdictions reported at least 30%. Compared to 2020, when half of the responding jurisdictions projected that between 1% and 5% or less of investors owned cryptocurrency, this is a sharp increase.

Since 2020, the crypto-asset space has continued to evolve. Despite volatility in the market, which experienced a major downturn during the 2022 ‘crypto winter,’ retail investors, in both advanced economies and emerging market jurisdictions, continue to invest in the crypto-asset market,

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IOSCO

Retail Investors Continue to Embrace Crypto Despite Market Volatility, Says IOSCO

According to IOSCO, dangers and concerns remain over the volatility of the cryptocurrency market, investor ignorance, a lack of regulations, and scams and fraud. The similarity between these problems and those listed in the 2020 report was noted.

A prolonged bear market that saw indices drop 73% from their previous highs, numerous high-profile failures and bankruptcies, an increase in scams, hacks, and investor losses, as well as more regulatory and enforcement activities in the cryptocurrency field, have all occurred over the last four years. Nevertheless, individual investors are still drawn to cryptocurrency assets, according to IOSCO. It was also observed in the survey that retail investors who have purchased cryptocurrency are generally male and younger, with an average age under 40.

Over the last four years, numerous surveys, studies, and reports have found increasing interest by investors, particularly new investors, in crypto-assets.

IOSCO

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