Cypriots warming up to crypto
Cypriots are investing in cryptocurrencies, as 13% have included a digital currency in their investment portfolio, ranking fourth in crypto-friendly attitudes among the EU27.
According to the latest Eurobarometer survey, 13 out of 100 Cypriots have invested in a cryptocurrency at some time, compared to the EU average of 8%.
Cypriots are keener in investing in cryptocurrencies, than they are in traditional assets. Cyprus is at the bottom of the list as just 10% of its population has invested in traditional investment assets, such as bonds and stocks.
Topping the list is Slovenia, considered by some the most crypto-friendly nation in the world. According to the survey, 18% of the country’s population has some sort of investment in crypto assets.
Croatia is second with 16% having some sort of investment in cryptos, followed by Luxemburg with 14%.
Cyprus is fourth along with Bulgaria, which also has 13% active in cryptocurrencies.
At the other end of the spectrum, the French are last for investments in crypto, as just 5% of the population has exposure to crypto assets.
Belgium, Germany, and Italy complete the bottom four, as just 6% of their population has an investment in crypto.
When it comes to traditional investment vehicles, Cyprus is last among its fellow EU member states, with 10% of its population exposed to traditional assets.
Sweden is first for investing in traditional assets with 60% of the country’s population having exposure to stocks or bonds.
It is followed by Finland with 42%, Malta 37% and Luxembourg with 36%.
In Slovenia, the country with the highest percentage of inhabitants exposed to crypto assets, just 22% invest in traditional assets.
Cyprus’ high percentage of people investing in cryptocurrencies comes despite local authorities’ warnings of risks involved in such investments.
Crypto-assets and associate products and services are not covered by the rules of the EU on financial services.
The Cyprus Securities and Exchange Commission (CySEC) is taking part in a joint campaign by the European Supervisory Authorities outlining warnings to consumers on the dangers associated with crypto assets.
Meanwhile, a new European framework for crypto asset companies should be approved by the European Parliament in May, with large crypto players on board.
George Theocharides, head of CySEC, has said that “large crypto asset companies know very well that only through regulation will they be able to survive.”
He said the Markets in Crypto-Assets Regulation (MiCA) should be implemented into national law by the EU member states about 12 to 18 months after the regulation is introduced. Cyprus has already licensed seven crypto asset companies and withdrawn the license of another in 2022.