Erik Weijers, 3 months ago

Dutch government campaign about risks crypto

With the campaign 'Smart in Crypto', the Dutch Ministry of Finance wants to inform young people about the risks of investing in crypto currencies. With videos on YouTube and Snapchat, among others, young people are made aware of pitfalls and overly high expectations.

According to the Ministry, the campaign is tailored to the age group of 13 to 25 years, and this is also reflected in the language. For example, the slogan is: 'Smart in crypto with every click. That's sic.'

The campaign runs on social media, as mentioned above. There is also a website: slimincrypto.nl. There, various risks are pointed out - but there is also a short section with education on the most important concepts in crypto.

Mostly relatively small amounts invested

Research from 2021 commissioned by the Netherlands Authority for the Financial Markets showed that 12% of Dutch people over eighteen invest in crypto. Two-thirds of these 1.2 million Dutch citizens, do so with less than €2500. Slightly less than half even trade with less than €500. A small majority of the investors say they are mainly "taking a gamble" and thus seem to be aware of the risks. On the other hand, some 100,000 consumers could only barely cope with an extreme drop in price. The new government campaign therefore seems to be primarily aimed at the latter, a vulnerable group.

The gist of the campaign: be careful

The slogans of the short videos on YouTube are:

  • 'Get educated about crypto before you make your trade.'
  • 'If you trade in crypto, do it with money you can spare.'
  • 'Don't get into crypto for quick riches. Stay realistic.'

The top 3 risks highlighted:

  1. Crypto influencers on social media are not always neutral and even not always to be trusted, for example because they get paid.
  2. Scams do occur.
  3. The price of crypto currencies is extremely volatile and so risk of loss is lurking.

No hot air

Of course, it is only right that the government places an emphasis on thinking carefully before investing in crypto. What is interesting to note is that the Dutch government does not treat crypto as hot air. For example, Finance Minister Sigrid Kaag said in an interview that crypto is a legitimate new form of payment infrastructure. The government also seems to accept that investing in crypto is simply a given for many young people. They don't discourage it.

At LiteBit, we agree with the emphasis on doing your own research before getting in crypto. It is one of the reasons we continuously publish news and education articles. We are also committed to complying with all regulations, in all countries in which we operate. For example, we have registrations in the Netherlands, France and Austria.

One missed opportunity of the campaign is that it fails to mention the benefits of investing in crypto, namely to help build wealth and financial independence. It's not either rags or riches, there's a middle ground!

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