In a move that could spell doom for digital jesters and meme lords alike, the Financial Conduct Authority (FCA) has tightened its grip on the wild world of cryptocurrency promotions. The British financial watchdog announced new guidelines aimed at reining in financial services companies and social media influencers who use memes to tout investments.
The FCA’s message is clear: no more funny business. Memes promoting financial products must now adhere to strict standards of fairness, clarity, and truthfulness. Any “finfluencers” hoping to share their latest investment tips in meme form will need the FCA’s stamp of approval first.
“Promotions aren’t just about the likes, they’re about the law,” warned Lucy Castledine, the FCA’s director of consumer investments. “We will take action against those touting financial products illegally.”
The regulator’s crackdown comes after a surge in misleading adverts about financial services, with over 10,000 taken down in 2022 alone. The use of memes to hype up investments, particularly in the cryptocurrency industry, has become a hotbed for potential scams.
Cryptocurrency enthusiasts have long flocked to platforms like Telegram and Reddit to share their latest investment strategies, often using memes to convey their excitement. However, the FCA is now warning users of these platforms that financial promotions on chatrooms and forums will still be subject to its rules.
The FCA’s move is part of a broader effort to combat the rise in financial scams, which spiked during the Covid-19 pandemic as more consumers turned to online platforms for banking and investment. The regulator has been particularly aggressive in cracking down on crypto advertising, requiring firms promoting consumer crypto investing in the U.K. to be authorized or registered with the regulator.
So, will the era of crypto memes come to an end? Only time will tell. But one thing’s for sure: the FCA is watching, and it’s not laughing.
(Source: DL News | CoinDesk)
