The UK is spending $ 15 million on a campaign warning young people to invest in virtual currency

Previously, the UK’s Financial Conduct Authority (FCA) has repeatedly warned that virtual currency investors should prepare to lose all of their money …

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The UK’s Financial Conduct Authority (FCA) announced on July 15 that it would launch a campaign to warn young people about the risks of investing in virtual currencies and other risky assets. The total estimated cost of this campaign is £ 11 million (15th). Million dollars).

According to a survey published in early July by the investment platform Interactive Investor, 45% of young investors in the UK said that their first investment was in virtual currencies and that the majority of them had borrowed money.

“This is a group of investors we seldom see. Investors aged 18-30 are likely to be drawn to social media,” said Nikhil Rathi, CEO of FCA. A campaign is needed to warn them of the risks. ”

Rathi said the FCA had repeatedly warned that cryptocurrency investors should prepare to lose all of their money.

According to a study published by the FCA last year, around 2.5 million people in the UK have bought virtual currency. And an analysis earlier this year showed that cryptocurrency investors are getting proportionally younger and taller.

“There is also evidence that, like the GameStop craze earlier this year, an increasing number of people are viewing investment as entertainment. They are behaving less rationally and emotionally due to the influence of hidden influencers, Mr Rathi, referring to the video game retailer GameStop’s stake that rose and then quickly collapsed.

“As technology is used to drive new types of customer investments, appropriate controls need to be put in place,” said the FCA manager.

According to the Financial Times, the UK Advertising Standards Authority said earlier this month that it will tighten controls on misleading marketing activities related to cryptocurrency investments in the near future.

FCA’s campaign information is related to the virtual currency market, which is experiencing many slumps. The market capitalization of cryptocurrencies is of 2,400. sunk Billion USD in May to only around 1,300 Billion USD due to the sell-offs, which preceded a series of bad news, including China’s regulatory move. On July 16, Bitcoin, the largest cryptocurrency on the market, traded at around $ 31,400, more than half off the record high of 64,863 U.S. dollar Discontinued in mid-April.

Duc Anh

VnEconomy