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Influencers and Crypto Memes Under UK Financial Promotion Rules, Says FCA

Influencers and Crypto Memes Under UK Financial Promotion Rules, Says FCA

Key Takeaways

  • The UK's FCA has extended financial promotion rules to include social media influencers and crypto memes.
  • Influencers and crypto entities must now ensure their financial promotions are authorized and transparent.
  • This regulatory update aims to reduce the risks associated with misleading financial promotions and improve the overall integrity of the financial market.

The Financial Conduct Authority (FCA) of the United Kingdom has published an expansion of the scope of the country's financial promotion rules.

This finalized guidance, released on Tuesday, clarified that all forms of communication, including crypto memes, can constitute financial promotions.

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This announcement builds on the authority's previous statements, indicating that the crypto sector and unpaid influencers might be subject to financial promotion regulations.

The guidance points out:

We’ve seen memes and other similar communications circulated on social media, with users often not realizing they may be subject to our rules. The use of memes in promotions is particularly prevalent in the cryptoasset sector.

Under the FCA's promotions regime, it is mandated that companies can not offer "invitation or inducement to engage in investment activity" unless they are authorized to do so. This rule also applies to influencers who might financially benefit from their posts.

Furthermore, now that the crypto sector is within the FCA's regulatory scopecrypto firms must either register with the FCA or ensure an individual with the necessary credentials approves their advertisements. Moreover, these firms are required to provide clear risk warnings in their marketing.

This guidance is part of the FCA's efforts to enhance consumer protection and market integrity. Last year, the authority also launched an initiative to warn influencers against illegal financial promotions in partnership with Love Island star Sharon Gaffka.

Aaron S., Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.



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