UK regulator invests $15 million in warning campaign against bitcoin and other cryptocurrencies
The FCA is reportedly launching a new £11 million ($15.2 million) digital marketing campaign to warn young people about the risks associated with investing in Bitcoin and other cryptocurrencies.
The regulatory agency’s chief executive, Nikhil Rathi, unveiled the measure in a speech delivered Thursday during a webinar on the FCA’s role as a proactive regulator.
The move comes shortly after the UK ad watchdog raised cracking down on marketing related to digital currencies.
In his speech, posted on the FCA page, Rathi cited recent research that revealed that nearly 2.5 million Britons own cryptocurrencies. The official highlighted the UK regulator’s concern over the growing adoption of digital assets, a trend prevalent among younger demographics.
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“We have seen an explosion among young people speculating in cryptocurrencies or other high-risk investments,” Rathi commented. He added that these users tend to behave “less rationally and more emotionally, incited by anonymous and irresponsible influencers on social media,” which can lead to money losses.
This is a category of consumer that we are not used to interacting with: young people between the ages of 18 and 30 are more likely to be drawn to social media. That is why we are creating an £ 11 million digital marketing campaign to warn you of the risks.
In detailing the FCA’s decision to push the new campaign forward, the director compared cryptocurrencies to events related to GameStop stocks in January this year, when a trading frenzy fueled by the Reddit WallStreetBets forum meteorically spiked the price of the shares of the company.
“As we have repeatedly made clear: investors in crypto assets must be prepared to lose all their money,” Rathi reiterated, picking up the position of the British regulator.