The goal of the campaign is to warn investors against making investment decisions based on emotional and social pressure but with rational thinking and knowledge of the market.
The regulator specified that the campaign is in response to the promotion of complex and risky investment products on social media channels. It even specified the increasing promotion of crypto products by celebrities.
“CySEC is concerned at the growing participation of younger inexperienced investors, and the proliferation of material on social media and online platforms to promote complex products that are not always what they seem,” said the Chairman of CySEC, Dr. George Theocharides.
The regulator even pointed out that investors are often unaware of the details of these risky investment products.
“It is particularly worrying that already low financial literacy levels are 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,” said Dr. Theocharides.
Gamification of Trading
Further, CySEC raised concerns about the 'gamification' of retail investments. It has become the latest financial market watchdog to red flag such techniques as several other CySEC counterparts are keenly studying the harmful impacts of such tactics and considering curbs.
However, the watchdog of the Mediterranean island did not specify if it wants to take any action against such 'gamification of investing' tactics.
“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,” Dr. Theocharides added.
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