• UK regulators are targeting crypto memes and “finfluencers” as new social media guidelines come into effect.
• The Financial Conduct Authority will ban incentives to invest in crypto, such as ‘refer a friend’ bonuses.
• Crypto-focused memes encouraging investing in digital assets may constitute as non-compliant promotions and could be subject to the law.
UK Regulators Target Crypto Memes & Fintech Influencers
Lawmakers in the UK are now targeting crypto memes and fintech influencers in an effort to enforce new social media guidelines set out by the nation’s Financial Conduct Authority (FCA). Starting October 8, 2023, the FCA will ban incentives to invest in crypto, such as ‘refer a friend’ bonuses and require firms to introduce clear risk warnings and a 24-hour cooling period for first-time investors.
Crypto Memes May Constitute Non-Compliant Promotions
The FCA has also warned that crypto-focused memes that encourage investing in digital assets may constitute as non-compliant promotions and could be subject to the law. Lucy Castledine, the Director of Consumer Investments at the FCA stated: “We’ve seen a growing number of ads falling short of the guidance we have in place to stop consumer harm. We want people to stay on the right side of our rules, so we’re updating our guidance to clarify what we expect of firms when marketing financial products online. And for those touting products illegally, we will be taking action against you.”
Purpose Of The Guidelines
The purpose of these new social media regulations is to protect consumers from being misled or taken advantage of when it comes to investing in cryptocurrencies or other high risk investments online. As more people turn towards online platforms for finance advice, this heightened level of scrutiny is necessary in order for investors to make informed decisions about their investments without risking their capital on fraudulent schemes or scams presented by unscrupulous actors.
FCA’s Commitment To Protect Consumers
The FCA has made it clear that they are committed to protecting consumers from being mislead by any financial promotion they see online. They want investors to make sure that they understand all relevant risks before making any investment decisions and remain compliant with all regulations set out by them, so they can safely navigate any potential pitfalls when dealing with cryptocurrency investments or other high risk investments available on these platforms.
Conclusion
It is important for traders and investors alike who use online platforms for advice or investment opportunities involving cryptocurrencies or other high risk assets like derivatives trading,, CFDs etc.,to ensure that they read through all relevant information provided by regulatory bodies like the FCA before engaging with them on any capacity whatsoever . This way , they can ensure their safety against frauds or scams while reaping maximum returns from their investments
