UK-based gambling harm prevention charity GamCare has warned that crypto and financial trading services can have an adverse impact on people who are vulnerable to gambling harms.
The organization has suggested that a new self-exclusion scheme should be introduced that specifically helps people who experience addictive behaviors to limit their access to trading and crypto platforms.
GamCare effectively wants to create a self-exclusion system that will help address any immediate issues. It already runs Gamstop, a self-exclusion scheme for gamblers.
According to Gamstop CEO Fiona Palmer, introducing the same tool for trading services could have significant effects and help those who struggle to control their habits.
“Over the last three years, we have seen how effective tools like Gamstop can be for those struggling with online, regulated gambling”, Palmer said.
She added that with the boom in cryptocurrency trading in recent years, the risk of potential harm has increased.
Jack Symons is the CEO of another self-exclusion application, Gamban. He said that many of the products that use financial mechanics, whether that is binary options, crypto or CFDs, share similarities with gambling platforms and that is what makes people vulnerable to reckless spending.
Helpline Advisors, another organization, described such trading as “quasi-gambling”. According to industry specialists, addiction helplines in the UK have registered an increased number of calls from people who had experienced financial or mental health distress caused by excessive spending on financial instruments or crypto.