The FSA, a Japanese regulator, has agreed to issue a new alert about the dangers of investing in cryptocurrencies. This time, however, he concentrated his efforts on the youth.
The Japanese government had previously approved changes to the country’s Civil Code, one of which was the reduction of the age of majority from 20 to 18 years. On April 1, 2022, it will begin operations. Those that have reached the age of 18 will then be able to buy digital currencies on their own. The FSA is really concerned about this.
The fundamental distinction between cryptocurrencies and traditional money was one of the key points highlighted by the regulator. According to them, no one guarantees the validity of the former, although the issuing countries are responsible for fiat. The standard warning that digital currencies are volatile and that there is a chance of major losses followed.
Regulators have included a few words about hackers who can break through cryptocurrency wallets and steal funds directly from cryptocurrency exchanges. The FSA stated that there is no fund in Japan that would compensate cryptocurrency depositors for their losses.
According to the FSA, young people will be able to call one of the helplines set up for those who are having trouble understanding how the new financial market functions, as well as those who have suffered psychological distress as a result of losses on cryptocurrency trading platforms.
Despite the declining age of the “majority” and the ability to purchase bitcoins, young people under the age of 20 are still barred from purchasing alcohol. Buying a car, getting married, renting real estate, and taking out loans are among the other “preferences” for 18-year-olds.