Now "finfluencers" and their cryptopublications (even unpaid and cryptomemes) will be under close scrutiny of the Financial Conduct Authority (FCA).
On July 17, the British financial regulator issued new guidance on financial advertising in social networks, in particular covering cryptomemes published by bloggers. Such publications must now be accompanied by specific warnings.
Too many people across the UK are being shown financial promotions from unsuitable sources.
We'll be ramping up our work to stamp out illegal financial promotions, particularly those found on social media. #financialpromotions#financialserviceshttps://t.co/sK8r5ExxVm
— Financial Conduct Authority (@TheFCA) July 17, 2023
The regulator refers to cryptocurrency as a "high-risk investment," so all advertising or financial consultations related to it and published without FCA approval may be considered a crime, punishable by up to 2 years in prison, an unlimited fine, or both penalties at once.
The law also applies to advertising that will be published outside the UK if it may affect the country's citizens.
From October 8, the FCA will also prohibit the use of financial incentives in cryptocurrency advertising, such as "referral bonus." Cryptocurrency exchanges must also clearly warn of risks and provide a 24-hour reflection period for new investors.
The Authority claims that in the fourth quarter of 2022, 69% of crypto advertising campaigns on social networks and websites were altered or canceled after its intervention.
The public can provide comments on the new guidance until September 11.
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