A new research study by the Ontario Securities Commission (OSC) found that many Ontarians lack understanding of crypto assets – even those who own them.
The study also revealed that an increasing number of Ontarians are being approached about participating in initial coin or token offerings, exposing them to potential risks.
Understand the potential risks
“It’s important that investors understand the potential risks and characteristics of purchasing a crypto asset product,” said Tyler Fleming, director of the Investor Office at the OSC. “We want to remind Ontarians to ask questions and read disclosure documents carefully to know what they are investing in.”
The study found that five per cent of Ontarians surveyed own crypto assets – or 500,000 Ontarians.
The study also found that men aged 18-34 are more likely to own a crypto asset than any other demographic group.
Among crypto asset owners surveyed, half spent less than $1,000; only nine per cent reported spending more than $10,000; and the majority own Bitcoin (63 per cent) or Ether (35 per cent).
Many of those who acquired crypto assets using a crypto asset trading platform reported experiencing issues using these platforms, including a halt in trading (21 per cent of trading platform users), problems withdrawing money from their account (20 per cent), problems transferring money into their trading platform account (16 per cent), and not understanding the fees they are being charged (15 per cent).