Government warns public against cryptocurrency risks

A public education campaign was jointly launched by the FSTB and IEC.

The Financial Services and the Treasury Bureau (FSTB) and the Investor Education Centre (IEC), a subsidiary of the Securities and Futures Commission (SFC), has jointly launched a public education campaign warning the public on the risks associated with cryptocurrencies and initial coin offerings.

According to a press release, the campaign was launched to equip the public with a comprehensive understanding of cryptocurrency transactions so that they may assess risks before making investment decisions and avoid speculative purchases. 

"ICOs and 'cryptocurrencies' are high-risk products that are not suitable for everyone. Cryptocurrencies are highly speculative and are associated with various kinds of risks. Their prices may be susceptible to significant fluctuations due to speculative activities. Investors may suffer significant monetary losses as a result of the volatile prices," said IEC Chairman Kelvin Wong. 

A series of advertisements in key transport areas in MTR stations and print and digital media will kickstart the public education campaign. 

The government also plans to release TV and radio advertisements on social media platforms as well as utilize the Chin Family website to provide a series of educational articles and infographics on the features and risks of ICOs and cryptocurrencies.