Abstract："CySEC is worried about the increased involvement of younger, inexperienced investors, as well as the proliferation of information on social media and internet platforms promoting sophisticated goods that are not necessarily what they seem," said Dr. George Theocharides, Chairman of CySEC.
The regulator started an education campaign for investors.
Several other authorities issued similar warnings earlier.
An investor protection campaign was started on Tuesday by the Cyprus Securities and Exchange Commission (CySEC) to address the growing worldwide epidemic of investment harm. The campaign's purpose is to caution investors against making investing choices based on emotional and social pressure rather than logical thinking and market expertise.
The effort, according to the regulator, is in reaction to the advertising of sophisticated and dangerous financial products on social media networks. It also mentioned celebrities promoting cryptocurrency items more often.
“CySEC is worried about the increased involvement of younger, inexperienced investors, as well as the proliferation of information on social media and internet platforms promoting sophisticated goods that are not necessarily what they seem,” said Dr. George Theocharides, Chairman of CySEC.
The regulator also said that many investors are uninformed of the specifics of these dangerous investment products.
Financial literacy among young people is diminishing, which has increased the chance that they would not completely comprehend the distinctive features and hazards associated with trading in these instruments, according to Dr. Theocharides.
Trading Gamification
Furthermore, CySEC expressed worry about retail assets becoming 'gamified.' It is the latest financial market watchdog to issue a warning about such approaches, as numerous other CySEC equivalents are closely scrutinizing the negative effects of such tactics and potential limitations.
However, the Mediterranean island's watchdog did not indicate whether it intends to take any action against such 'gamification of investment' practices.
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