On July 17, the FCA (Financial Conduct Authority), the financial regulator of the United Kingdom, proposed new guidelines for advertising financial products on the internet. These specifically address promotional memes and financial influencers, also known as “finfluencers”. According to the guidance, crypto memes would be treated as regular advertising and subject to similar rules.
The FCA has expressed concerns about an increasing number of finance-oriented influencers promoting financial products without sufficient knowledge about them. Many of these influencers target younger demographics, who are susceptible to misinformation and hype. Therefore, influencers who fail to meet the compliance standards in their promotions could face up to two years in jail, unlimited fines, or both.
The aim of these new regulations is to mitigate the potential risks posed by non-compliant online practices, particularly on social media platforms like TikTok, where financial promotions have gained significant attention. Firms involved in promoting financial products, including those within the crypto sector, will be required to include risk warnings and avoid investment incentives.
Also read: Confiscations and ads control in the UK
