Crypto memes can be considered financial promotions, says UK watchdog
Crypto firms and influencers may need to start slapping disclaimers on crypto memes to stay compliant with advertising laws in the United Kingdom, according to a new proposed guidance from the country's financial regulator.
On July 17, the Financial Conduct Authority (FCA) released a proposed guidance on social media financial promotions which targets promotional memes and financial influencers — “finfluencers.”
Too many people across the UK are being shown financial promotions from unsuitable sources.We’ll be ramping up our work to stamp out illegal financial promotions, particularly those found on social media. #financialpromotions #financialservices https://t.co/sK8r5ExxVm
The FCA said it’s seen memes from crypto firms circulated online which many don’t realize are subject to its promotional rules.
It said promotional memes are particularly prevalent in the crypto sector and added any type of communication could be considered a financial promotion.
The FCA considers crypto a high-risk investment. It can be advertised to retail investors at large but there are requirements such as including risk warnings and a ban on investment incentives.
It said in Q4 2022, 69% of financial promotions on websites or social media from authorized firms were amended or withdrawn following FCA intervention.
It launched the consultation to update its guidance from 2015 and make clear its expectations on how marketers are to implement its regulations around promotions.
The FCA stated it’s seen an increase in the number of finance-oriented influencers promoting financial products they have little knowledge of, which typically target a younger audience.
Related: UK bill on online safety should apply in the metaverse, say lawmakers
It warned
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