The Financial Conduct Authority (FCA), which regulates cryptocurrency operations in the United Kingdom, has set aside a large sum of money to launch digital advertisements warning citizens against investing in cryptocurrencies.
In a Thursday webcast, FCA CEO Nikhil Rathi launched the plan. First, he gave a lecture titled “Our Role and Business Plan,” He discussed how to safeguard customers in a rapidly changing economic climate.
Why is the FCA concerned about young people investing in cryptocurrency?
Young people are likely to be pulled in by anonymous and unaccountable social media influencers, as was the case with the GameStop scandal at the start of the year, which prompted the FCA to launch its campaign against crypto investing.
He also mentioned the FCA‘s latest research, which revealed that up to 2.3 million Britons had purchased digital assets. In addition, younger individuals are gambling on cryptocurrency and other high-risk investments, according to Rathi.
“That’s why we are creating an £11m ($15m) digital marketing campaign to warn them of the risks,”he said.
Investing in cryptocurrency is often misunderstood for pleasure, according to the Financial Conduct Authority (FCA).
While speaking, Rathi stated that individuals today regard investing as a form of fun, resulting in big losses on their side.
He claims that more people view investing as a form of entertainment and that such illogical conduct might result in significant losses for them.
The CEO stated that the dangers associated with crypto investments are “severe,” citing the FCA‘s well-known statement that investors should be prepared to lose all of their money if they invest in cryptocurrencies.
Similarly, the Advertising Standards Authority in the United Kingdom has condemned crypto advertisements as deceptive and socially irresponsible.
The country’s advertising regulator also ordered crypto exchange platform Luno to remove its “time to buy” Bitcoin (BTC) campaign. The regulators also launched a crackdown on crypto-related advertisements earlier last month, labeling them a “red alert” priority.
Given their recent ugly dispute with Binance, the world’s largest crypto exchange business, it’s unsurprising that the UK authorities are doing all of this to crack down on crypto.