Crypto memes can be considered financial promotions, says UK watchdog

Crypto firms and influencers may need to start slapping disclaimers on crypto memes to stay compliant with advertising laws in the United Kingdom, according to a new proposed guidance from the country’s financial regulator.

On July 17, the Financial Conduct Authority (FCA)

It warned influencers their promotions could be an offense punishable by up to two years in jail, an unlimited fine or both. The law applies even to promotions from outside the U.K. which could have an effect in the country.

In its reasoning for the reminder, it cited a report that claimed over 60% of 18-to 29-year-olds follow social media influencers, with three-quarters saying they trust their advice.

A 2021 FCA survey found 58% of respondents under 40 years old cited hype from social media and the news as reasons for their investment in what the watchdog considers a high-risk product.

Public comments on the proposed guidance are open until Sep. 11.

Magazine: Cryptocurrency trading addiction — What to look out for and how it is treated