A recent study conducted by Owner.One, a company specializing in asset management and inheritance planning, has revealed concerning insights into the practices of crypto millionaires worldwide.
The research highlights a significant lack of knowledge and disregard for personal information safety, as well as a poor understanding of asset transfer processes and Know Your Client (KYC) regulations.
The study, which analyzed data from 8,000 families in 18 countries across several continents including Africa, the Middle East, Asia, the European Union, the United Kingdom, and North America, found worrying trends that lead to the accumulation of hundreds of millions of dollars in unclaimed cryptocurrency assets globally.
A staggering 91% of transitions from fiat currency to cryptocurrency and back experience disruptions in ownership continuity, causing difficulties in asset management and access.
Furthermore, 87% of respondents were unaware of the severe implications of losing asset-related data, with such losses rendering crypto assets unrecoverable.
The research uncovered that 23.7% of all crypto assets on the market are currently unowned, and only 7% of clients engaging in crypto payment services take the time to understand the risks related to ownership continuity.
Additionally, 42.8% of capital founders and an overwhelming 88% of their family members, including children, lack familiarity with KYC regulations, showcasing a significant gap in knowledge and compliance.
An alarming 81.6% of respondents neglect to address the knowledge disparity between themselves and their family members regarding asset and wealth information.
Only 4% fully understand the complications arising from KYC procedures, and merely 22% of capital heirs are aware of the risks similar to those of winning a lottery associated with donation and inheritance procedures.
The study also found that only 11.9% of wealth founders recognize the necessity for future generations to undergo KYC procedures for themselves and their parents, highlighting a critical lack of foresight in asset management.
Shockingly, fewer than 5% of founders are aware that their inaction leaves their family and children unprepared for wealth transfer challenges.
The findings signal an urgent need for enhanced education and awareness among crypto investors about the importance of protecting personal information and adhering to regulatory standards.
Ignoring these issues not only jeopardizes personal fortunes but also threatens the integrity and future of the cryptocurrency market.