The FCA is investing $15 million into warning young people about the risks of cryptocurrency investing.
The financial regulator’s CEO said that young crypto holders are prone to behaving “less rationally and more emotionally.”
The FCA has issued several warnings about cryptocurrencies in the past, recently targeting Binance.
Share this article
The U.K.’s financial regulator said that young crypto holders are likely to behave “less rationally and more emotionally.”
FCA to Invest in Cautioning Against Crypto
The Financial Conduct Authority (FCA), the U.K. body responsible for regulating the country’s financial services, is launching a marketing campaign to warn against the risks of crypto investing.
CEO Nikhil Rathi announced the move in a speech Thursday. The FCA will spend £11 million (around $15 million) on the campaign. During the announcement, Rathi said that almost 2.5 million U.K. residents hold crypto.
He went on to make several assessments of crypto’s core user base, explaining that the campaign would target a younger demographic. He explained that many crypto investors are likely to be younger people who are prone to acting “less rationally and more emotionally,” adding that they are often drawn in by “anonymous and unaccountable social media influencers.”
Meme stocks and cryptocurrencies have exploded in popularity among Gen Z in recent months. As a result of the boom, many young influencers have taken to social media to promote cryptocurrencies like Safemoon. In response to the growing interest, TikTok banned sponsored crypto posts last week. TikTok is popular among younger generations.
Rathi said that the FCA does not typically engage with the 18 to 30-year-olds, but remarked that people in that age bracket are “more likely to be drawn in by social media.” He then discussed the GameStop frenzy that hit the stock market in January, drawing comparisons to the crypto market.
The campaign announcement isn’t the only sign of the FCA taking a stand against the crypto space. It’s one of many regulators to recently issue a warning about Binance; the exchange has been banned from offering derivatives in the U.K. It also warned that crypto investors “could lose all of their money.”
Many U.K. crypto firms are currently awaiting regulatory approval from the FCA to continue operating in the country. They were required to register before 10 Jan. 2021, with a decision on each firm’s regulatory status due on July 9. That deadline’s now been pushed back to March 2022.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
FCA Warns Crypto Investors May “Lose All of Their Money”
The FCA has warned investors of the risks associated with investing in cryptoassets. Their article references potential dangers, including the lack of protection for consumers and the price volatility of…
Binance CEO Addresses Exchange’s Regulatory Troubles
In an open letter, Binance CEO Changpeng Zhao outlined the regulatory progress the exchange has made, its plans for further compliance, and its willingness to cooperate with authorities worldwide. Binance…
Efficient Market Hypothesis: Does Crypto Follow?
The Efficient Market Hypothesis (EMH) is a concept in financial economics which states that security prices reflect all the available information about a financial instrument. EMH is one of the…
Bitcoin Dominates Crypto by Brand Recognition, Says FCA Survey
By far, Bitcoin has the strongest brand recognition among cryptocurrencies, according to a new report from the UK’s Financial Conduct Authority. The report surveyed over 2,200 consumers and 658 cryptocurrency…