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The European Central Bank (ECB) recently published a report titled ‘Decrypting financial stability risks in crypto-asset markets.’ The report comes at a time when crypto-assets are at the center of intense policy debates.

The demand for these crypto-assets has radically increased in recent years despite the underlying volatility.

The survey showed that around 10% of households may own crypto assets.

EU financial regulators recently called out crypto assets for posing risks from ‘investor protection’ and ‘market integrity’ perspectives.

One of the proposals included the Markets in Crypto-Assets Regulation (MiCA) to improve market connectivity and check into regulatory uncertainties.

The risk of crypto assets is also apparent in futures contracts and options trading.