• UK regulators are targeting crypto memes and fintech influencers by introducing new social media guidelines to prevent financial promotions.
• The new rules come into effect from October 8th, 2023 and include a ban on incentives to invest in crypto, risk warnings and a 24-hour cooling period.
• Crypto-focused memes that encourage investing in digital assets may constitute as non-compliant promotions and could be subject to the law.
Regulators Targeting Crypto Memes & ‘Finfluencers’
UK lawmakers are now targeting crypto memes and fintech influencers in an effort to enforce new social media guidelines. According to the Financial Conduct Authority (FCA), the regulatory agency will be cracking down on illicit and non-compliant financial promotion starting in October.
New Rules To Kick In In October
The FCA’s new rules will come into effect on October 8th, 2023 with a ban on incentives to invest in crypto, as well as risk warnings and a 24-hour cooling period for first time investors. These measures aim to protect consumers from making hasty investment decisions without properly considering the risks involved.
Memes Constitute As Non-Compliant Promotions
Crypto focused memes which encourage investing in digital assets may also constitute as non-compliant promotions according to the FCA’s guidelines, which means they could potentially be subject to the law if they don’t comply with regulations.
FCA Director’s Warning
The FCA’s Director of Consumer Investments, Lucy Castledine has warned that “We’ve seen a growing number of ads falling short of the guidance we have in place to stop consumer harm… For those touting products illegally, we will be taking action against you.”
In order for these measures to be successful it is important that both firms and individuals understand what constitutes compliant promotion when dealing with high risk investments such as cryptocurrencies so that they are not inadvertently breaking any laws or regulations when promoting online.