A new proposed guidance from the Financial Conduct Authority (FCA) suggests that crypto firms and influencers in the United Kingdom might have to include disclaimers on crypto memes in order to adhere to advertising laws.
On July 17, the Financial Conduct Authority (FCA) released a proposed guidance on social media financial promotions that targets promotional memes and financial influencers — “finfluencers.”
According to the Financial Conduct Authority (FCA), it has observed the circulation of memes from crypto firms online that many people are unaware are subject to the FCA’s promotional regulations. The FCA noted that promotional memes are especially common in the crypto industry and emphasized that any form of communication has the potential to be classified as a financial promotion.
The Financial Conduct Authority (FCA) categorizes crypto as a high-risk investment. While it is permissible to advertise crypto to retail investors in general, there are specific requirements that must be met. These requirements include the inclusion of risk warnings in the advertisements and a prohibition on offering investment incentives.