What's Hot

    Circle Launches EURC on Stellar Network

    September 28, 2023

    Gemini Allocates $24 Million for Indian Expansion

    September 28, 2023

    Kraken Secures EMI License from Ireland and Spain

    September 28, 2023
    Facebook Twitter Instagram
    Facebook Twitter Instagram
    The Bull's GazetteThe Bull's Gazette
    Members Area
    • News
      1. Markets
      2. Policy & Economy
      3. Business
      4. Tech
      Featured

      Circle Launches EURC on Stellar Network

      News September 28, 2023
      Recent

      Circle Launches EURC on Stellar Network

      September 28, 2023

      Gemini Allocates $24 Million for Indian Expansion

      September 28, 2023

      Kraken Secures EMI License from Ireland and Spain

      September 28, 2023
    • Features
      • Opinion
    • Research
      • Publications
      • Market Analysis
      • Contribute
    • Finance & Crypto Guides
    • Consultation
    • Membership
    • Store
    The Bull's GazetteThe Bull's Gazette
    Home»News»UK Regulator Proposes That Crypto Influencers Add Disclaimers on Crypto Memes
    News

    UK Regulator Proposes That Crypto Influencers Add Disclaimers on Crypto Memes

    Anietie DavidBy Anietie DavidJuly 18, 2023Updated:July 18, 2023No Comments3 Mins Read
    UK Regulator Proposes That Crypto Influencers Add Disclaimers on Crypto Memes
    Share
    Facebook Twitter LinkedIn Pinterest Email

    UK regulator, the Financial Conduct Authority (FCA), has issued a proposed guidance that may require crypto firms and influencers to include disclaimers on cryptocurrency-related memes in order to comply with advertising laws.

    The new guidance by the UK regulator, released on July 17, specifically targets financial promotions on social media platforms, focusing on promotional memes and individuals known as “finfluencers” – financial influencers who actively promote various investment opportunities.

    The FCA expressed concerns over the circulation of memes from crypto firms on online platforms, pointing out that many individuals might not be aware that these seemingly innocuous memes are subject to the regulator’s promotional rules. Notably, promotional memes have become increasingly prevalent in the cryptocurrency sector, prompting the need for clearer guidelines to ensure compliance.

    According to the FCA, any form of communication, including memes, that encourages or promotes financial products or investments could be considered a financial promotion. As cryptocurrencies are classified as high-risk investments, the regulator imposes specific requirements when advertising them to retail investors. These include the mandatory inclusion of risk warnings and a ban on investment incentives to protect potential investors from undue risks.

    UK Regulator Warns Influencers Promoting Finance Products to Younger Audiences

    The UK’s Financial Conduct Authority (FCA) has also issued a warning regarding the rise of finance-oriented influencers promoting financial products to younger audiences without possessing adequate knowledge about the products they endorse. The regulator expressed concerns about the potential risks this trend poses to consumers and the broader financial market.

    According to the FCA’s statement, influencers engaged in such practices could be subject to legal consequences, including imprisonment of up to two years, an unlimited fine, or both. Notably, this law extends to promotions originating from outside the UK that could still have an impact on the country’s residents.

    The warning comes as the UK regulator cited a report revealing that over 60% of individuals between the ages of 18 and 29 follow social media influencers. Moreover, approximately three-quarters of those surveyed expressed their trust in the advice provided by these influencers. The combination of a trusting audience and influencers with limited knowledge of financial products has raised concerns about potential misrepresentation or inappropriate endorsements.

    A 2021 the UK regulator survey highlighted that 58% of respondents aged under 40 admitted they invested in high-risk products primarily due to the hype generated by social media and traditional news sources. The watchdog has been closely monitoring this trend and its impact on consumer behavior, aiming to protect individuals from unsuitable financial decisions driven by misinformation and inadequate understanding.

    FCA UK Financial Authorities UK Government
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
    Previous ArticleBinance Lays Off Employees Amidst Ongoing Regulatory Challenges
    Next Article Gary Gensler Advocates for Increased Adoption of AI in Regulatory Operations
    Anietie David

    Anietie has worked in the blockchain industry for three years, gaining experience in blockchain technology, cryptocurrencies, DeFi, and NFTs. As a seasoned content writer, he is passionate about creating effective content strategies for blockchain brands. In addition to content writing, he also has a strong interest in front-end development. When he's not working, he spends his time reading horror novels or playing CODM.

    Related Posts

    Circle Launches EURC on Stellar Network

    September 28, 2023

    Gemini Allocates $24 Million for Indian Expansion

    September 28, 2023

    Kraken Secures EMI License from Ireland and Spain

    September 28, 2023
    Add A Comment

    Leave A Reply Cancel Reply

    Top Posts

    Hong Kong Monetary Authority (HKMA) Issues Warning on Misleading Crypto Banking Claims

    September 18, 2023

    Report Shows that 99% of Nigerians are Crypto Aware

    September 4, 2023

    Hong Kong Report Reveals Positive Impact of Bond Tokenization on Market

    August 26, 2023

    Our best content, straight to your inbox.

    Disclaimer

    Capital at risk. Content on this website does not constitute financial advice. Please do your due diligence before making any investment.

    Company
    Company

    At the forefront of news and analysis for emerging markets, business, crypto and tech - TBG is redefining financial information through resources for next-generation economics.

    Facebook Twitter Instagram LinkedIn TikTok Discord
    Links
    • About
    • Contribute
    • Advertise
    • Careers
    • Membership
    • Investor Relations
    • Frequently Asked Questions

    TBG Newsletter

    © 2023 The Bull's Gazette.
    • Terms and Privacy
    • Contact Us

    Type above and press Enter to search. Press Esc to cancel.