Most monetary authorities worldwide have warned their residents on the dangers of shopping for bitcoin or investing in ICOs, however Hong Kong goes a step additional. Concern is such within the nation that authorities are taking to TV and different media to warn of the dangers of funding.
At this time the Monetary Companies and the Treasury Bureau (FSTB) and the Investor Schooling Centre (IEC), which is a subsidiary of the Securities and Futures Fee (SFC), launched a public marketing campaign to boost consciousness of the “potential dangers” of investing in ICOs and shopping for cryptocurrency. That may embrace TV and print media spots with warnings.
Final September, the SFC expressed “concern” on the growth in ICO funding, which noticed almost $four billion in capital raised in 2017. Not solely are investments unregulated, however there’s rising concern that some tokens — that are distributed throughout an ICO in change for fiat sums or cryptocurrency — might violate securities legal guidelines.
Added to that, this new trade is awash with fraud. A latest report from Ernst & Younger discovered that 10 p.c of funds raised from ICOs was stolen or misplaced. Telegram’s upcoming $1.2 billion ICO, for instance, launched not less than a dozen rip-off websites that duped would-be traders. Whereas this previous weekend, a Japanese change claimed to have misplaced over $400 million in tokens.
In a press release, Dr. Kelvin Wong, the Chairman of the IEC, defined why “high-risk” crypto investments “aren’t appropriate for everybody.”
“‘Cryptocurrencies’ are extremely speculative and are related to numerous sorts of dangers. Their costs could also be prone to vital fluctuations on account of speculative actions. Traders might undergo vital financial losses because of the unstable costs,” he mentioned.
There’s no preview of those adverts, however the marketing campaign will start this week with notices on Hong Kong’s MTR stations, and inside print and digital media. A variety of web sites have additionally been arrange, the picture above is taken from considered one of them.
The TV marketing campaign is scheduled for March, and it’ll be accompanied by radio advertisements and a video for social media.
Disclosure: The creator owns small quantities of cryptocurrency.
Featured Picture: Li-Anne Dias