Apr 05, 2024 02:55
A study has unveiled that a notable proportion of cryptomillionaires globally are not only risking their personal information but alsolacking a fundamental understanding of crucial procedures regarding assettransfer and Know Your Client (KYC) regulations. The study was conducted byOwner.One, a company specializing in asset management and inheritance planning.
Analyzing data from 8,000 families across 18 countriesspanning Africa, the Middle East, Asia, the EU, the UK, and North America,Owner.One uncovered alarming trends contributing to the accumulation ofhundreds of millions of dollars in unclaimed cryptocurrency assets globally.
Alarming Disruption in Crypto Ownership Continuity
Shockingly, in 91% of cases involving the transition fromfiat currency to cryptocurrency and back, there is a disruption of ownershipcontinuity, leading to complications in asset management and access. Despitethe critical nature of safeguarding asset-related data, 87% of respondents areunaware that once this information is lost, crypto assets become unrecoverable.
This lack of awareness has resulted in a staggering 23.7% ofall crypto assets on the market being unowned. A mere 7% of clients utilizingcrypto payment services show any interest in understanding the risks associatedwith ownership continuity before engaging in transactions.
KYC Ignorance Threatens Future Generations
Nearly half 42.8% of capital founders and a staggering 88%of their family members, including children, are unfamiliar with KYCregulations, indicating a significant gap in understanding and compliance. Aconcerning 81.6% of respondents take no measures to address the informationasymmetry between themselves and family members regarding asset and wealthinformation, potentially leading to confusion and mismanagement.
Only a minute 4% of respondents fully grasp the depth ofproblems arising from KYC procedures and regulations, indicating a widespreadunderestimation of associated risks. Merely 22% of capital heirs comprehend theincreasing resemblance of donation and inheritance procedures to winning alottery, highlighting the lack of awareness regarding the potential risksinvolved.
Alarmingly, only 11.9% of wealth founders understand thatfuture generations will be obligated to undergo KYC procedures for boththemselves and their parents, further underscoring the lack of foresight inasset management. A shocking revelation indicates that fewer than 5% offounders realize that their inaction effectively shifts the burden of managingwealth transfer onto their family and children, leaving them ill-equipped tonavigate the associated challenges and obstacles.
The implications of these findings are thought-provoking,indicating a pressing need for increased education and awareness among cryptoinvestors regarding the importance of safeguarding personal information andcomplying with regulatory measures. Failure to address these issues not onlyputs individual fortunes at risk but also threatens the stability andlegitimacy of the burgeoning cryptocurrency market as a whole.
This article was written by Tareq Sikder at www.financemagnates.com.
World Crypto Global
