Should You Stop Your Kids From Interacting With Blockchain And Cryptocurrencies?

As blockchain technology and cryptocurrency are going mainstream, many are raising concerns regarding the interaction between children below the age of 18 and cryptocurrency.

Melvin Breton Guerrero, the policy specialist for UNICEF’s Office of Global Insight and Policy, explained that anyone could set up and access wallets since the technology provides anonymity to the users.

Larry Cameron, chief information security officer of the Anti-Human Trafficking Intelligence Initiative (ATII), advocates the risks of children performing cryptocurrency transactions are prone to crypto scams and fake platforms.

With the rapid adoption of Blockchain, the children are too keen on this leading technology. Crypto.com, the popular cryptocurrency exchange, has predicted that the crypto users globally can reach 1 billion by the end of 2022.

As Blockchain is going mainstream, Millennials between the age of 26 and 41 are leveraging the technology to create wealth. A 2021 study reveals that as per data from Stilt, a personal loan company, over 94% of crypto owners are between the age of 18 and 40.

Children And Cryptocurrency

With the broader adoption of cryptocurrency, there are also concerns among individuals regarding how individuals under the age of 18 are interacting with these assets. These are being discussed on a higher level. The latest reports of UNICEF titled “Prospects for children in 2022” that inspect the global trends among children highlighted the challenges due to the concerns regarding children using cryptocurrency.

Melvin Breton Guerrero, the policy specialist for UNICEF’s Office of Global Insight and Policy, explains in an interview that in order to prevent any harm on children due to their interaction with cryptocurrency, be it self-inflicted harm,,, or caused by third-party engaging with cryptocurrency.

Melvin advised that children under the age of 18 need to be educated on the use of cryptocurrencies and blockchain enterprises and how technology will be a part of our daily lives, just like the internet.

Guerrero pointed out that since cryptocurrency transactions provide certain anonymity to their users, anyone can set up and access a cryptocurrency wallet. Many exchanges do not even inquire about the age of the users. Guerrero warns that a child can easily use crypto wallets for transactions, and then, there will be nothing that anyone could do.

However, despite there being no age restrictions, many cryptocurrency exchanges require users to fill out a KYC to ensure that they are above 18 or older. Gemini, a US-based cryptocurrency exchange, offers custodial accounts for minors.

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Children Are More Vulnerable To Scams

There are definitely other challenges that can arise when children gain access to cryptocurrency. For example, in 2021, there was a steep rise in crypto crimes. Children could easily fall victim to such incidents. Larry Cameron, chief information security officer of the Anti-Human Trafficking Intelligence Initiative (ATII), talks about the risks associated with when children interact with cryptocurrency.

Larry points out that children can easily fall prey to scams and fake platforms. Bad actors are quite experienced in mapping out inexperienced users and exploiting them. Data breaches, identity theft, or fraud can be carried out in the child’s name without them knowing or even finding out. Besides, when adults struggle to keep a private key, it is highly likely that children easily lose their private key.

Along with the concerns around children’s use of cryptocurrency, there is also the possibility of children facing severe consequences due to their inexperience. Guerrero noted that since the data recorded on Blockchain is permanent and immutable, it could be harmful to children.

However, some organizations are working to tackle these challenges. For example, UNICEF has recognized the challenges involving children and cryptocurrency with its wider adoption of digital currency. The organization acknowledges that the technology can be used for good.