The UK financial regulator is launching a £ 11m ($ 15m) campaign to educate young people about the risks of investing in the cryptocurrency industry.
In a statement, FCA Chairman Nikhil Rathi referred to a recent study that found 2.5 million Britons own crypto assets. He highlighted the FCA’s concern that it is mainly young people who are investing in cryptocurrency, who behave “less rationally and more emotionally, being spurred on by anonymous influencers on social networks.”
“This is a category of consumers with which we are not used to interacting. Young people between the ages of 18 and 30 are likely to be attracted to cryptocurrency investments through social media, ”said Rathi.
To raise awareness among young people of the risks of investing in cryptoassets, FCA will launch a £ 11m public awareness campaign. According to a March FCA study, “the thrill of investing” and “status based on a sense of ownership” are encouraging young people to invest in cryptocurrency and forex markets.
Rathi likened the cryptocurrency situation to what happened to GameStop’s stock, when the buzz fueled by Reddit’s WallStreetBets boosted the company’s stock price from $ 18 to $ 483.
As a reminder, last summer, the UK Treasury Department offered FCA to take control of advertising projects related to cryptocurrencies in order to exclude “misleading” promotions. Recently, the UK Advertising Standards Authority said it would actively investigate potentially misleading or irresponsible advertisements for cryptocurrency products.