The rypto platform will face a regulatory crackdown amid growing demand for stricter regulations on digital currency trading.
Matt Zurb-Cousin, founder of gambling site blockchain service Gambon, said: “I think the Financial Conduct Authority needs to know about what counts as investment and what counts as speculative and I think it’s enough to give consumers enough information. It is up to the regulators to provide.”
This follows reports from advisors at gambling helpline GamCare that saw a significant increase in calls from people who have stopped gambling and registered on self-exclusion sites, but are now investing in cryptocurrency instead.
Callers reported huge losses on investments and wanted to speak to an advisor about the guilt they felt from losing money.
In early May, the crypto token Luna collapsed, causing a combined $40 billion loss to investors, while the price of bitcoin has fallen 40% since its peak in November.
A caller who spoke to the charity said: “I was watching the trading app for about 16 hours a day.
“I kept putting my money and chasing after losses while I lied to my family about how I was running.
“Friday nights, I was scared of the weekend because I couldn’t trade. That’s when I realized it was no longer trading – I had a gambling problem.”
According to a survey by Gambon, more than 50% of regular gamblers trade cryptocurrencies.
Zurb-Cousin said: “These platforms are geared towards overtrading: for people to constantly change positions, put in more money, and chase losses – all the characteristics associated with gambling losses.”
Credit: www.standard.co.uk /