In Brief:
- FCA has launched a YouTube and TikTok campaign to warn young people about the risks of investing in cryptocurrencies.
- FCA said young investors who have invested in high-risk assets need to know reality.
As reported by iNews, the Financial Conduct Authority (FCA) has launched a YouTube and TikTok campaign to warn young people about the risks of investing in crypto.
Sarah Pritchard executive director of the FCA said, “We want to create confident consumers. This campaign is about empowering younger investors, not inhibiting them.”
She further added, “We don’t believe that the actions of many of these new investors reflect what they describe as their tolerance to risk.”
A study by the FCA surveyed young investors who have invested in high-risk assets (between 18 and 40). More than three-quarters of respondents (76%) reportedly said that competition with family and friends motivated their investment decisions.
Pritchard said, “60% of those invested in high-risk assets said they want stable returns. We don’t want to limit choice, we are just asking investors to pause and consider. Are you prepared to lose all your money? If the answer is yes, then fine.”
This is not the first time that FCA targeted the crypto market. Months back FCA has also taken aim at Binance, a popular crypto exchange. After Binance failed to provide basic information to the British regulator, the FCA doubled down on its stance towards BML, claiming that it cannot be regulated.
