Influencers and cryptocurrency memes under UK advertising regulations
Key Takeaways
- The UK’s Financial Conduct Authority has expanded its financial promotions rules to include social media influencers and cryptocurrency memes.
- Influencers and cryptocurrency companies must now ensure that financial promotions are approved and transparent.
- This regulatory update aims to reduce the risks associated with misleading financial promotions and improve the overall integrity of financial markets.
Announced by the UK Financial Conduct Authority (FCA) Expand the scope of the country’s financial promotion rules.
The final guidance, released Tuesday, states: Any form of communication, including cryptocurrency memes, can be a financial promotion.
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The announcement builds on previous statements from authorities. It indicates that the cryptocurrency sector and unpaid influencers may be subject to financial promotion regulations.
The guidance points out:
We’ve seen memes and other similar communications circulate on social media, but users often don’t realize that they can apply to our rules. The use of memes in promotions is particularly prevalent in the cryptocurrency sector.
Under the FCA’s promotional scheme you are required to: The company cannot provide “Solicit or entice people to engage in investment activities.” However, this excludes cases where permission has been granted. This rule also Applies to influencers Anyone who may benefit financially from their posts.
Moreover, the cryptocurrency sector is now Within the regulatory scope of the FCA, Crypto companies must either: Please ensure that your ad is approved by an individual who is registered with the FCA or has the necessary credentials. Additionally, these companies must provide: Clear hazard warnings In their marketing.
This guidance is part of the FCA’s efforts to strengthen consumer protection and market integrity. Last year, authorities launched an initiative to warn influential people about illicit financial promotions. has partnered with Love Island star Sharon Gaffka..
With a master’s degree in Economics, Politics, and Culture in East Asia, Aaron wrote a scientific thesis analyzing the differences between Western capitalism and collective capitalism after World War II.
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