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UK financial watchdog warns influencers against ‘misleading’ crypto memes – DL News
- The Financial Conduct Authority has published new rules for promoting financial products on social media.
- The FCA has identified crypto memes as possible violations of the new rules.
The UK’s financial regulator has issued guidelines warning social media influencers who promote financial products, including cryptocurrencies.
Influencers paid to promote financial products need regulatory approval to avoid criminal prosecution, Financial Conduct Authority says said.
The report specifically identified influencers promoting cryptocurrencies on social media.
“Promotions that do not meet this standard may encourage consumers to purchase products and use services that are not suited to their needs, which may lead to poor outcomes for them,” the regulator’s report said.
Financial adverts must be “fair, clear and not misleading” and contain risk warnings, the FCA said.
“The requirement that promotions be fair, clear, and not misleading applies to promotions of crypto assets,” the report reads.
Cryptocurrency influencers have been encouraged to refer to the FCA’s cryptocurrency-specific site advice published in 2023 for more information.
The FCA has also identified memes as a potential source of online crime.
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Users are often unaware that promotional memes may be subject to FCA rules, the authority wrote, noting that crypto memes are “particularly prevalent” among influencer promotions.
Cryptocurrencies, referred to as “cryptoassets” in the report, have been designated as high-risk investments by the regulator.
In early March, the FCA said it would “not oppose” applications from recognised investment exchanges to list ETNs.
The London Stock Exchange announcement On March 11, it will accept applications for Bitcoin and Ethereum exchange-traded notes, a move that opens the way to a new market segment in the UK.
Tyler Pearson is a Markets Correspondent for DL News based in Alberta, Canada. Got a tip? Contact us at ty@dlnews.com.