The Financial Conduct Authority (FCA), the agency in the United Kingdom in charge of regulating the country’s financial sector, is starting a marketing campaign to warn about the hazards of crypto investment.
In a speech on Thursday, CEO Nikhil Rathi revealed the change. The FCA is investing £11 million in the campaign. Rathi stated at the introduction that almost 2.5 million UK people own cryptocurrency.
He went on to analyse the primary user base of cryptocurrency, indicating that the campaign will target a younger audience.
He stated that many cryptocurrency investors are likely to be younger individuals who act “less rationally and more emotionally” and that they are frequently pulled in by “anonymous and unaccountable social media influencers.”
Who could they mean by this I wonder? Elon..
In recent months, meme stocks and cryptocurrencies have skyrocketed in popularity among Generation Z. Because of the growth, many young influencers have resorted to social media to promote cryptocurrencies such as Safemoon.
TikTok prohibited sponsored crypto postings last week in reaction to the rising interest. TikTok is popular among millennials.
Rathi stated that the FCA does not generally deal with persons aged 18 to 30, but that those in that age range are “more likely to be drawn in by social media” He then compared the crypto market to the GameStop craze that struck the stock market in January.
The campaign launch isn’t the only indication of the FCA’s opposition to the crypto sector. It is one of several regulators who have lately issued warnings about Binance; the exchange has been barred from providing futures in the United Kingdom. It also cautioned crypto investors that they “could lose all of their money.”
Many crypto companies in the United Kingdom are presently awaiting regulatory permission from the Financial Conduct Authority (FCA) to continue operating in the nation.
They have to register by January 10, 2021, with a decision on each firm’s regulatory status expected on July 9. That deadline has now been moved to March 2022.