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As per the KPMG survey, investors and traders are regaining confidence and trust in digital assets following a tough time for the market last year.
KPMG, a firm providing audit, advisory, and tax services revealed the increasing interest of German investors and traders in cryptocurrency. A survey conducted by the advisory firm showcased that investors are actively participating in digital asset investment despite Germany’s tough times for the market last year.
What KPMG’s Survey Speaks About Cryptocurrency
A survey conducted by KPMG with BTC-ECHO on April 9, resulted in positive responses from investors towards cryptocurrency.
The survey involved around 2,400 private crypto investors from different regions including Germany, Switzerland, and Austria. Interestingly, half of the respondents had investments of over 20% in cryptocurrencies.
Additionally, 67% of the investors who invested more than 50% of their assets in digital assets hold long-term plans with the investment.
On average, investors allocate more than half of their assets to digital assets.
As per the KPMG survey report, 82% of investors look for a secured platform while selecting a cryptic exchange, whereas 65% of the participants prefer despite and withdrawal options as the main necessity while investing.
Furthermore, 62% of the total respondents consider transaction cost as one of the major factors when choosing a crypto exchange.
Discussing security, one of every three investors considers their digital asset investments as more secure. Additionally, the survey results also showcase the preferences of the investors while dealing with the investments.
The survey also assessed the risk and popularity of various cryptocurrencies. As per the assessment, 34% of the investors consider their investment in cryptocurrencies to be “rather safe”, whereas 43% consider it “rather risky”, 18% “risky”, and 5% go with “very risky”.
Moreover, market manipulation, regulation, and financial crime emerged as a few of the biggest risks in the crypto environment. Also, Bitcoin, Ethereum, and Solana ranked in the list of top cryptocurrencies to invest in.
91% of the respondents invest in Bitcoin whereas 78% of the investors made investments in Ethereum. Both the cryptocurrencies’ utilization increased among investors when compared to 2023.
Crypto Regulations In Germany
Looking into the past, Germany doesn’t have a good experience with the crypto market due to a significant disparity between crypto exchange registrations and its actual utilization.
As investors prioritize security, deposit and withdrawal options, and transaction costs while investing, the German regulatory has been actively engaged in constructing strong regulations for cryptocurrencies to protect investors and maintain financial system stability.
As a major step, the government permitted the banks to offer, manage, and trade cryptocurrencies, along with taking part in the implementation of new policies for cryptocurrency exchanges and initial coin offerings (ICOs).
Regulatory bodies including BaFin and the Federal Ministry of Finance heavily indulge in the cryptocurrency regulatory framework development, compliance, and reporting obligations.
Additionally, to safeguard the investors, the regulatory focus on the use of Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations to minimize scams and fraudulent activities on exchanges.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
