TL;DR Breakdown
- UK FCA ready to spend $15m on campaign against crypto investment
- Rise in number of young people who have crypto investment worrisome to the FCA
- UK reminds residents that they should be prepared to lose all their stake when investing in crypto
The Financial Conduct Authority (FCA) regulating cryptocurrency activities in the UK has budget high to begin digital campaigns warning citizens against crypto investment.
FCA chief executive Nikhil Rathi announced the initiative at a Thursday webinar. His speech was titled “Our Role and Business Plan,” where he talked about protecting consumers in the rapidly changing economic environment.
Speaking on why they aim to spend $15.2 million on advocacy campaigns on crypto investment, the executive said that the FCA is worried about the increasing adoption of crypto investment among the younger demographic.
Why FCA is worried about young people investing in crypto
One of the concerns the FCA raised prompting its campaign against crypto investment is that young people are likely to be drawn in by “anonymous and unaccountable social media influencers,” as was the case with the GameStop saga at the start of the year.
He also cited the FCA’s recent research showing that as many as 2.3 million Britons had bought digital assets. Rathi said that there’s “an explosion among younger people speculating on cryptocurrencies or other high-risk investments.”
“That’s why we are creating an £11m ($15m) digital marketing campaign to warn them of the risks, he said.
Crypto investment mistaken for entertainment – FCA
Rathi, while speaking, said people now see investment as entertainment which could lead to significant losses on their part.
“More people see investment as entertainment, and that such irrational behavior may lead to significant losses on their part, he stated.
The executive noted that the risks involved in crypto investments are “stark,” as he emphasized the FCA’s popular saying that investors should be ready to lose all their money” if they invest in cryptocurrencies.
Similarly, the UK’s Advertising Standards Authority recently opposed crypto ads it terms as misleading and socially irresponsible.
The authority that regulates advertisement in the country also ordered crypto exchange platform, Luno to stop its “time to buy” Bitcoin (BTC) advert. Early into the month, the regulators also announced a crackdown on crypto-related ads, categorized as “red alert” priority.
It is, however, unsurprising the UK authorities are doing all these to clamp down on crypto giving their recent messy fight with Binance exchange, the world’s number one crypto exchange firm.
