Lawmakers in the UK are now targeting crypto memes and fintech influencers in a bid to enforce new social media guidelines.
According to a new press release by the country’s Financial Conduct Authority (FCA), the regulatory body will crack down on unauthorized and non-compliant financial promotion from October.
“The FCA has stepped up its investigation into online, often illegal, financial promotions, recognizing the significant rise in prominence of ‘finfluencers’ and the potential for consumer harm that occurs online…
As of October 8, 2023, the FCA will ban incentives to invest in crypto, such as “refer a friend” bonuses. Companies should also implement clear risk warnings and a 24-hour cooling-off period to give novice investors time to consider their investment decision. These measures are comparable to the regime that applies to other high-risk investments.”
The FAC also states this in its new guidelines say that crypto-targeted memes that encourage investment in digital assets may be non-compliant promotions and subject to the law.
“Companies are reminded that any type of communication may constitute a financial promotion and is subject to S21. We’ve seen memes and other similar posts circulating on social media where users often don’t realize they’re subject to our rules. The use of memes in promotions is especially common in the crypto asset sector.”
As stated by Lucy Castledine, the FCA’s Director of Consumer Investments, in the press release:
“We have seen a growing number of advertisements that do not meet the guidelines we have established to prevent consumer harm. We want people to stay on the right side of our rules, so we’re updating our guidelines to clarify what we expect from companies when they market financial products online.
And for those who promote products illegally, we will take action against you.
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