Theocharides added:
It is particularly worrying that already low Financial literacy levels are also declining and this has exacerbated the risk of young people not fully understanding the unique characteristics and risks that trading in these products can carry and many will get in over their head.
CySEC further raised concerns over the growing endorsement and advertising of crypto products by celebrities on social media channels.
Additionally, the regulator detailed that ‘gamification‘ of retail investments is also worrisome.
Theocharides stated:
Not surprisingly these gamification techniques are particularly attractive to younger people, many of whom with little experience in investing and will likely end up losing their money.
According to the official press release, the regulator did not specify any additional actions it might take on the such ‘gamification of investing’ methods. Instead, CySEC stressed the need for financial education programmes and the importance of financial literacy.
CySEC’s Australina counterpart alerted of the regulatory risks associated with engaging with financial influencers last year.
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