HomeInvestmentLetter: Regulate Cryptocurrencies Like Playing, Not Investing

Letter: Regulate Cryptocurrencies Like Playing, Not Investing

I commend the FT for masking the promoting debate round cryptocurrency (Floki’s “Meme Coin Advertising and marketing Blitz” researched by the advert’s watchdog, Report, November 18). This raises regulatory questions for each promoting and monetary authorities, however I am questioning if both of those two choices are acceptable for such a debate.

In a really small print on a Floki advert I noticed, it says, “Your funding can’t solely develop, it could lower.” … … “With the key phrase” funding “.

Flocks and comparable attachments? By Whose Definition? Who can say that? Governments around the globe are slowly getting caught up within the hype round cryptocurrency as they conceptualize investment-style regulation for such belongings, virtually guaranteeing their acceptance as an funding. With out intrinsic worth, is not shopping for Floki extra like a chance than an funding? We are able to argue about playing and statistics, however gamblers know that they aren’t investing, however taking dangers.

I do not need to spoil anybody’s occasion. So good luck to these gamers who’re afraid of lacking out and need to play with Floki et al. However let’s name it what it’s. There may be a longtime set of playing promoting ideas that ought to cowl a lot of the cryptocurrency. Why re-create a completely new regime for an already overwhelmed promoting and monetary regulator?

Peter D Han
Emeritus Professor of Banking and Finance
London Institute of Banking and Finance, London EC4, UK

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