GamCare Proposes Self-Exclusion Scheme for High-Risk Traders
GamCare, the problem gambling charity, is calling for a self-exclusion scheme to be created for people involved in high-risk trading and investing, including cryptocurrencies.
The organization says that while many people enjoy these activities without any harm, there is increasing concern that people are experiencing issues. According to the charity, its National Gambling Helpline has been receiving calls from people who feel that financial problems and mental health issues related to trading are similar to those experienced by problem gamblers.
Over the last three years, we have seen how effective tools like GAMSTOP can be for those struggling with online, regulated gambling. The area of cryptocurrency trading especially has experienced rapid growth and, with that, potential harm. We would be happy to discuss the area of self-exclusion with the Financial Conduct Authority (FCA) and other organizations working in this sector.
The rapid rise of crypto trading has caused a stir in countries such as the UK. A recent consultation with banks, investment platforms, the debt advice sector, gambling businesses, and gambling support services resulted in GamCare proposing that regulator bodies and services create a sector-wide self-exclusion scheme for all trading platforms where high-risk investments and day trading is available. It is suggested that any such scheme could be run together with regulators such as the Gambling Commission.
Many of these products (CFDs, binary options, crypto, etc.) share a lot in common with gambling platforms; there’s no barrier to entry, they encourage over-trading and possess game-like characteristics. Regular consultations with advisors on the National Gambling Helpline, in addition to research undertaken by Gamban, identified the need to add these products to the Gamban block list.
Symons added that helpline advisors have said it would be useful to have something, such as a self-exclusion scheme, that they could offer to callers who are trying to avoid these types of trading products. As such, he believes that “adding these platforms would be beneficial both to the product and the collaborative strength of the TalkBanStop campaign.”