What does good look like when it comes to crypto education, asks ii's Myron Jobson.
Commenting, Myron Jobson, Senior Personal Finance Analyst, interactive investor, says: “Cryptocurrencies marketeers have danced to the beat of their own drum for far too long, operating outside the FCA’s regulatory framework that governs traditional investments which left crypto speculators susceptible to financial harm. Cryptocurrency advertising often paints a vibrant picture, focusing on the allure of potential riches while conveniently sidestepping the intricacies and risks that underpin the crypto market.
“Without a firm grip on the reins, advertising in the crypto realm has become a Wild West of dubious claims and misleading information. Unscrupulous actors have exploited the regulatory vacuum to peddle false promises and entice unsuspected victims into unwise and sometimes outright scam investments.
“Cryptocurrency markets are a cauldron of volatility, subject to wild swings and abrupt reversals. Investors require a comprehensive understanding of the volatility, technological complexities, and market uncertainties inherent in cryptocurrency bets. Failing to provide accurate and balanced information creates a distorted reality, leading unsuspecting individuals down a dangerous path of financial harm. As such, while it is only right that investors have the freedom to speculate, clear risk warnings are essential so that they know what they are getting themselves into.
“How crypto firms will be able to prove that their customer base has the appropriate level of knowledge is anyone’s guess. The challenge for the regulator is to devise a robust customer knowledge framework so that all the players involved knows what good looks like. Armed with knowledge and a discerning eye, investors can better avoid the pitfalls of the crypto landscape.”
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