The British authorities are slowly increasing the pressure on crypto as the industry grows rapidly. The Financial Conduct Authority (FCA), the British financial regulator, is going to launch a campaign to warn young people about the risks of investing in crypto.
“More and more people see investment as a form of entertainment,” said the CEO of the regulator.
It is not surprising that governments are not very happy with crypto networks that are completely out of their control and in which huge amounts of money are circulating. Regulators do try to protect investors and warn of the dangers involved. That is why the FCA is now launching a campaign aimed at digital channels.
Because that is a great danger, especially for young people. It is often influencers who indeed manage to influence young people and persuade them to invest in something, says FCA CEO Nikhil Rathi:
“In the last year, we published research that showed that nearly 2.5 million people in the UK had bought cryptoassets. This year’s analyses show that those who ‘tried’ this type of investment were younger and, proportionally, more likely from an ethnic minority. There are also indications that, as with the GameStop episode, more people see investment as entertainment-behave less rationally and emotionally, spurred by anonymous and inexplicable influencers on social media.”
That is why the FCA is now launching a campaign with a budget of £11 million to warn young people. Young people in the United Kingdom are also often inclined to invest with borrowed money, which makes the situation even more acute.