British regulator launched anti-advertising of cryptocurrencies on YouTube and TikTok
The Financial Conduct Authority (FCA) the UK has launched massive cryptocurrency anti-advertising on YouTube and TikTok, protecting young investors from ill-considered financial investments.
According to representatives of the British FCA, young people mistakenly believe that the local financial regulator will be able to “bailout” them by returning the money if the digital currency market collapses. This “knowledge gap” was found by the FCA in a survey of people between the ages of 18 and 40.
Most of the respondents admitted that they consider profitability up to 30% quite real. At the same time, the most favorable rate for investors on individual savings accounts (ISA) in UK banks is 0.86% in Oaknorth Bank and Paragon Bank. Those who invest their money in the British stock market received an average annual return of 9.2% over the past 10 years. Therefore, a level of 30% and even higher seems "cosmic". Such statistics were shared by the Goldman Sachs corporation.
If we talk about digital currencies, then jumps in their value can sometimes exceed 50% per day, which makes this type of asset extremely risky in the eyes of most world regulators and politicians. What they, in turn, do not get tired of regularly reminding depositors.
Plus, none of the crypto assets are covered by the Financial Services Compensation Program (FCSC). British investors investing their hard-earned money in regulated assets can be sure that in the event of problems of investment providers, their funds are protected up to the threshold of £85,000 ($117,172). While cryptocurrency investors and those who invest in Forex in such cases will lose all their savings.
With the onset of the pandemic, the rate of cryptocurrencies and market volumes increased markedly, as did the number of those who became interested in a new asset class, deciding to invest in them. Among these people, there were a lot of young Britons who were pushed to crypto investments by the hype on social networks and the news. This opinion was shared by 58% of those surveyed by FCA. Of 1,000 people between the ages of 18 and 40, 76% said their investments were driven by competition with friends, family, or acquaintances. At the same time, 68% also compared this type of earnings with gambling.
Based on research and commitment to protecting young investors, FCA launched a five-year InvestSmart ad campaign worth £11 million ($15.16 million). According to regulators, this will help raise awareness among young people about the risk of investing in cryptocurrencies, and YouTube and TikTok, the most popular platforms among local young users, will become the “springboard” for the distribution of FCA materials.
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