Especially with the Covid 19 pandemic cryptocurrencies with its growing popularity cryptocurrency scam also increased.
Drawing attention to the increasing cryptocurrency fraud through social media International Organization of Securities Commissions (IOSCO), stressed the need for stricter regulations in this regard.
In the report released today, Hong Kong regulator Ashley Alder, who chairs IOSCO’s board, said: “Innovative technologies and social media are transforming key aspects of retail investment.” said.
Ranked first among risky and unregulated activities in the IOSCO report crypto assets noted the location. The following statements were used in this regard:
“Trading on cryptocurrency asset trading platforms often hosts fraudulent methods such as fraud, manipulation, insider trading.
In this context, highly volatile cryptoassets may not be suitable for most retail consumers.”
Stating that social media negatively affects the decision-making process of retail investors, IOSCO members said, cryptocurrency He stated that the fight against scams requires international coordination.
social media, securities trading and/or cryptocurrency trading IOSCO thinks that platforms that use deceptive advertisements to actively encourage people to trade cryptocurrencies could be banned altogether.