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UK restricts memes about cryptocurrencies and other investments to combat scams
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The UK’s financial services regulator has announced guidelines for financial services firms and social media influencers creating memes about cryptocurrencies and other investments in a bid to combat a rise in scams.
The Financial Conduct Authority said in a statement on Tuesday that all advertising for financial products – including those expressed in memes – must be fair, clear and not misleading.
The watchdog said financial social media influencers, or “finfluencers,” must have approval from an FCA-appointed representative before posting adverts and memes about financial products and services, the FCA said.
“Promotions are not just about likes, they are about the law. We will take action against those who illegally sell financial products,” Lucy Castledine, the FCA’s director of consumer investments, said in a statement on Tuesday.
“Social media is not always the best way to promote complex products. Companies need to consider whether a platform with limited characters or space is the right place to do so.”
The FCA said it had removed more than 10,000 misleading financial services adverts in 2022.
The regulator said the use of memes in promotions is particularly prevalent in the cryptocurrency sector.
Crypto memes are particularly prevalent on Telegram, a platform popular with digital currency enthusiasts. Reddit is another place where cryptocurrencies are widely discussed.
The FCA said it had seen promotions using memes to promote certain investments on discussion forums such as Reddit and Telegram.
Users of chat rooms and forums should be aware that financial promotions on these channels will still be subject to its rules, the FCA said.
The move is part of the FCA’s efforts to tackle the rise in financial scams. Scams have increased sharply during the Covid-19 pandemic as more consumers have turned to online platforms for their banking and investment needs.
The FCA has become particularly aggressive when it comes to cryptocurrency advertising. In October 2023, the FCA began requiring companies wishing to promote cryptocurrency investment to consumers in the UK to be authorised or registered with the regulator, or to have their marketing approved by an authorised firm.