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FinanceMagnets
Published on 2024-04-03 | 5 months ago
Unclaimed Crypto Fortunes: 87% Are Unaware of Unrecoverable Assets
A study has unveiled that a notable proportion of crypto
millionaires globally are not only risking their personal information but also
lacking a fundamental understanding of crucial procedures regarding asset
transfer and KYC (Know Your Client) regulations. The study was conducted by
Owner.One, a company specializing in asset management and inheritance planning.Analyzing data from 8,000 families across 18 countries
spanning Africa, the Middle East, Asia, the EU, the UK, and North America,
Owner.One uncovered alarming trends contributing to the accumulation of
hundreds of millions of dollars in unclaimed cryptocurrency assets globally. Alarming Disruption in Crypto Ownership ContinuityShockingly, in 91% of cases involving the transition from
fiat currency to cryptocurrency and back, there is a disruption of ownership
continuity, leading to complications in asset management and access. Despite
the critical nature of safeguarding asset-related data, 87% of respondents are
unaware that once this information is lost, crypto assets become unrecoverable.
This lack of awareness has resulted in a staggering 23.7% of
all crypto assets on the market being unowned. A mere 7% of clients utilizing
crypto payment services show any interest in understanding the risks associated
with ownership continuity before engaging in transactions. KYC Ignorance Threatens Future GenerationsNearly half 42.8% of capital founders and a staggering 88%
of their family members, including children, are unfamiliar with KYC
regulations, indicating a significant gap in understanding and compliance. A
concerning 81.6% of respondents take no measures to address the information
asymmetry between themselves and family members regarding asset and wealth
information, potentially leading to confusion and mismanagement. Only a minute 4% of respondents fully grasp the depth of
problems arising from KYC procedures and regulations, indicating a widespread
underestimation of associated risks. Merely 22% of capital heirs comprehend the
increasing resemblance of donation and inheritance procedures to winning a
lottery, highlighting the lack of awareness regarding the potential risks
involved. Alarmingly, only 11.9% of wealth founders understand that
future generations will be obligated to undergo KYC procedures for both
themselves and their parents, further underscoring the lack of foresight in
asset management. A shocking revelation indicates that fewer than 5% of
founders realize that their inaction effectively shifts the burden of managing
wealth transfer onto their family and children, leaving them ill-equipped to
navigate the associated challenges and obstacles.The implications of these findings are thought-provoking,
indicating a pressing need for increased education and awareness among crypto
investors regarding the importance of safeguarding personal information and
complying with regulatory measures. Failure to address these issues not only
puts individual fortunes at risk but also threatens the stability and
legitimacy of the burgeoning cryptocurrency market as a whole.
This article was written by Tareq Sikder at www.financemagnates.com.
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