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  <p class="is-style-lead">The UK’s financial regulator has unveiled new proposed guidelines requiring crypto firms and influencers to add disclaimers to crypto-related memes.</p> 
  <p>In its recently released guidance on social media financial promotions, the Financial Conduct Authority (FCA) specifically targets promotional memes and financial influencers, commonly called “finfluencers.”</p> 
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     <p lang="en" dir="ltr">Too many people across the UK are being shown financial promotions from unsuitable sources.<br><br>We’ll be ramping up our work to stamp out illegal financial promotions, particularly those found on social media. <a href="https://twitter.com/hashtag/financialpromotions?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#financialpromotions</a> <a href="https://twitter.com/hashtag/financialservices?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#financialservices</a> <a href="https://t.co/sK8r5ExxVm" target="_blank" rel="noopener noreferrer nofollow">https://t.co/sK8r5ExxVm</a></p>— Financial Conduct Authority (@TheFCA) <a href="https://twitter.com/TheFCA/status/1680872556302041088?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">July 17, 2023</a> 
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  <p>The financial regulator expressed concern over the proliferation of memes from crypto firms that circulate online without adhering to its promotional rules.</p> 
  <p> You might also like: <a href="https://crypto.news/uks-fca-is-looking-to-collaborate-with-crypto-entities/" rel="noopener noreferrer nofollow"> UK’s FCA is looking to collaborate with crypto entities </a> </p> 
  <p>Promotional memes have become increasingly prevalent in the crypto sector, and the FCA emphasized that any form of communication, including memes, could be considered a financial promotion.</p> 
  <p>The FCA cited misleading or unclear advertisements that fail to adequately inform consumers about the potential risks of financial products. </p> 
  <p>Examples include individuals on TikTok promoting debt counseling without providing a comprehensive understanding of the risks involved, as well as buy-now-pay-later Instagram ads that neglect to outline the relevant risks associated with unregulated credit.</p> 
  <p>Subsequently, the FCA warns influencers, cautioning that non-compliance with the regulations could lead to severe consequences.</p> 
  <p>Promotions that violate the guidelines may be punishable by up to&nbsp;<a href="https://crypto.news/uk-regulators-to-set-new-rules-for-crypto-ads/" rel="noopener noreferrer nofollow">two years in jail</a>, an unlimited fine, or both. It is important to note that these regulations extend to promotions from outside the UK that may impact the country.</p> 
  <p>The decision to introduce stricter regulations is driven by social media influencers significant sway over consumer behavior. </p> 
  <p>In a&nbsp;<a href="https://www.mrm-london.com/wp-content/uploads/2022/04/mrm-young-money-report-28-april-2022.pdf" target="_blank" rel="noopener noreferrer nofollow">research&nbsp;</a>by consultancy firm MRM, nearly three-quarters of young people trust information provided by social media influencers.</p> 
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   <div class="wp-block-embed__wrapper"> <iframe title="U.K. Blazes Trail With New Cryptocurrency Rules" width="1020" height="574" src="https://www.youtube.com/embed/qKeT0yyrS4E?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe> 
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  <p>A&nbsp;<a href="https://www.fca.org.uk/news/press-releases/young-investors-driven-competition-hype" target="_blank" rel="noopener noreferrer nofollow">survey&nbsp;</a>conducted by the FCA in 2021 further revealed that almost 60% of individuals under 40 who have invested in high-risk products based their decisions on social media posts and news.</p> 
  <p>The FCA is further enhancing consumer protection by announcing additional measures. Effective Oct. 8, incentives to invest in cryptocurrencies, including “refer a friend” bonuses, will be prohibited. Additionally, crypto firms must include explicit risk warnings in their advertisements.</p> 
  <p>The new consumer duty rules, which come into effect at the end of this month, aim to ensure fairer and clearer social media promotions by financial services firms.</p> 
  <p> Read more: <a href="https://crypto.news/crypto-firms-face-uphill-battle-to-meet-fca-standards/" rel="noopener noreferrer nofollow"> Crypto firms face uphill battle to meet FCA standards </a> </p>
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Crypto influencers, firms must add disclaimers to meme promos, FCA says

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