A new study commissioned by the top French financial regulator, the Financial Markets Authority (AMF), has highlighted a substantial uptick in cryptocurrency investments among French retail investors. The study, which was based on a survey of over 8,000 participants, revealed that about one in four French adults are now actively involved in the cryptocurrency market.
According to the study, cryptocurrencies constitute a notable portion (9.4%) of investment portfolios among French retail investors, ranking second only to real estate assets (10.7%).
The study also examined the “profile and motivations” of “new retail investors” who started investing in stocks, funds or crypto assets in 2020. It found that over half (54%) of these new investors own cryptocurrencies, compared to only 25% of those investing before 2020. Notably, the average investment in crypto stands at around €4,070, with an even higher ownership rate among the 25-34 age group at 63%.
The primary motivation for engaging in crypto investments, according to the study, is the desire to diversify savings and achieve higher returns. Social media influence and advice from acquaintances also played a substantial role in shaping the decisions of many new crypto investors.
However, the study also highlights a potential knowledge gap among new individual investors, especially in the 18-24 age range, who exhibit a relatively low level of financial knowledge. This demographic was more prone to providing incorrect answers about fundamental investment strategies compared to their traditional counterparts.
The AMF clarified that this report is part of its broader initiative to comprehend the factors contributing to the surge in retail investors within the country and to provide appropriate support. The regulator collaborated with the OECD for the study and plans to release a second report in 2024.
Meanwhile, the AMF, in August 2023, introduced stricter requirements for Crypto and Digital Asset Service Providers (DASPs) seeking registration in France, including prerequisites such as implementing robust conflict of interest policies, increased disclosure, and a ban on using client assets without consent.
The AMF emphasized that the revisions align with upcoming pan-European crypto regulations under the EU’s Markets in Crypto-Assets (MiCA) framework, which will take effect in late 2024. However, these new rules are expected to take effect from January 2024.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
