In this episode of The Fair, Clear, and Not Misleading podcast, hosts Wayne Green and Gareth Malna discuss the concept of "frictions" in the realm of cryptocurrency.
They explain frictions as a set of rules designed to slow down consumers in their purchase journey for crypto, preventing impulsive or emotional purchases and ensuring thoughtful investment decisions.
The hosts delve into the four essential frictions: a personalised risk warning, investor categorisation, appropriateness assessment, and a 24-hour cooling-off period. They further discuss the implications of these frictions for both the consumers and the providers, emphasising the importance of understanding and implementing these rules accurately.