The survey, which was commissioned by the Luxembourg House of Financial Technology and conducted by PwC, surveyed 127 respondents from the asset and wealth management industry in Luxembourg.

The results show that 73% of respondents surveyed in the study said there was a lack of infrastructure maturity for cryptoassets. Another 53% said crypto-assets are inherently volatile and unsuitable for most investors.

The report also found that a third of respondents surveyed said regulations, such as the EU Markets for Cryptoassets (Mica) Regulation, was a critical prerequisite for their involvement in the space, whereas half of respondents said they were either not interested in the regulations or that it would not materially impact their business.

Mica is expected to enter into force this year. The EU regulation intends to close gaps in existing financial services legislation by establishing a harmonised set of rules for cryptoassets. Among other things, it imposes restrictions on the issuance of stable coins.

Luxembourg ranks higher than UK, France

While the US, Switzerland and Singapore continue to lead the pack in the cryptoassets space, respondents ranked Luxembourg higher than the United Kingdom and France.

19% of respondents surveyed said they considered Luxembourg as a leader in the cryptoassets space, while just 11% put the UK and 12% put France in the same category.

69% of respondents said the US remained the cryptoasset leader, down from 79% when the survey was conducted in 2021.