Crackdown looms as gamblers hooked on Bitcoin

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The rypto platform will face a regulatory crackdown amid growing demand for stricter regulations on digital currency trading.

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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.”

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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.

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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 /

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