LONDON—Gamification has introduced a new generation of retail investors to financial markets who may not be aware there are few protections in assets like cryptocurrencies, the European Union’s securities watchdog said on Tuesday. Gamification refers to using smartphones to trade, a trend that took off on Wall Street during the COVID-19 pandemic with apps like Robinhood, and has spilled over into European markets. “We want investors to engage more in financial markets and not just keep their money under the mattress,” Verena Ross, chair of the European Securities and Markets Authority, told a Forum Europe financial services conference. But gamification also presents significant risks, creates speculation, and leaves investors not realizing there are protections when trading markets like cryptoassets, she said. Social media has also allowed the spread of unauthorized trading advice and the bloc is due this year to revamp its “retail investor” strategy to reflect the rise of …