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IOSCO urges for investor education on digital currency

Author: Content Editor
The International Organization of Securities Commissions (IOSCO) is calling for increased investor education on digital currencies due to growing retail interest despite the risks involved. IOSCO's report emphasizes the need for targeted digital currency education initiatives, particularly for younger and novice investors who are attracted to get-rich-quick schemes and high returns promised by digital assets. The report highlights the volatility, failures, and fraud in the crypto sector, and notes that many investors underestimate the risks involved. Social media plays a significant role in digital currency investment decisions, with friends, family, and social media serving as primary sources of information and advice for retail investors. The report urges regulators to use social media to reach investors interested in digital currencies and warns that the messaging across social media platforms by influencers and targeted advertising can be misleading. The report also highlights high-profile failures in the crypto sector that resulted in significant losses for retail investors. IOSCO calls for enhanced investor education efforts tailored to digital currency issues and targeted at younger, novice investors to address the high-risk nature of these assets and the prevalence of scams.

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