UK FCA concerned about young investors' interest in cryptocurrencies – Bits Media

The UK Financial Conduct Authority has launched an 'InvestSmart' program to educate inexperienced UK investors about the risks of investing in cryptocurrencies.

As reported by The Guardian, UK Financial Conduct Authority (FCA) interviewed 1 000 British people aged from 18 to 40 years old, engaged in trading foreign currencies and investing in “risky” products. These include Bitcoin and other cryptocurrencies, ICO, as well as contracts for difference (CFD). 

According to survey results, 76% respondents invest in cryptocurrencies, to experience the “competitive spirit” with friends or relatives. 68% respondents compared investing in cryptocurrencies with gambling. Every fifth respondent (21%) stated, that it plans to store purchased crypto assets for more than a year, or less 8% survey participants intend to keep them for more than five years. Most cryptocurrency investors (69%) They made a mistake, that digital assets are regulated by the FCA.

The FCA concluded, that users do not realize the lack of protection and the risk of losing all their money. The regulator is concerned, What a hype for cryptocurrencies, their “propaganda” on social networks, a sense of excitement and the desire to get rich quickly encourages young people to invest in high-risk products. That's why the FCA launched the InvestSmart program on 11 Milln pounds, aimed at that, to educate inexperienced investors about the risks, to which they are exposed in the stock or cryptocurrency market.

В сентябре FCA призвало социальные сети ужесточить меры против рекламы криптовалют. Это связано с увеличением количества мошеннических криптовалютных проектов на 222% in the period from April 2020 March 2021 of the year.