Expert warning as kids invest in cryptocurrencies [Advance Cash ]

Expert Warning As Kids Invest In Cryptocurrencies

A surprising number of children have invested in online cryptocurrencies as a way to "secure their future" - almost one in four aged 13 to 16 are either investing in them or considering doing so. The findings are revealed in a report launched today by Internet Matters, which urges parents to talk to their children about the risks of being targeted by scammers and calls on the government to do more to address the dangers.

The report shows that 8% of children have already invested in cryptocurrencies despite the risks of scams, while 15% of children are looking to invest. The main reason (49%) given was to secure their financial future – worrying given the level of financial risk involved in trading cryptocurrencies, especially in the context of the cost of living crisis.

Four in 10 (40%) of those who signed up for crypto or would, said it was “to make big money,” while 38% saw it as “the future of money” . Almost one in 10 children surveyed (9%) had invested in non-fungible tokens (NFTs).

The report showed that the main concern of parents and children familiar with crypto-assets, including those who would not consider investing in them, was the risk of falling victim to cryptocurrency or cryptocurrency scams. NFT. The top three risks cited by parents and children are victims of fraud or scams (46%), children being exploited and encouraged to buy crypto (35%), and people trying to target or steal from children ( 35%).

Internet Matters is today calling on the government to take more action to protect children from these dangers. The Financial Conduct Authority is targeting more UK crypto businesses with an increasing number of fake investment scams being investigated as the most vulnerable in society including children are targeted by scammers.

The report stresses that children should be given due consideration by policymakers when formulating regulations regarding crypto-assets, rather than treating their needs as a secondary concern. In the government's 82-page consultation paper on crypto-asset regulation, the words "children", "young people", "parents" or "families" do not appear anywhere.

And despite the impact that financial damage can have on children's lives, it generally falls outside the scope of the Online Safety Bill, with the exception of fraudulent paid advertising. Internet Matters calls for new anti-fraud lessons, promised in the recent fraud strategy, to focus on online scams and crypto-assets.