- UK’s Financial Conduct Authority warns financial influencers against sharing misleading crypto advice online, saying they could face fines and jail time
- Meme coins and tokens are popular in crypto but often extremely volatile, providing big gains for some investors but losses for many others
- FCA offers advice to influencers considering promoting financial products, noting that disclosing financial interests is required like any investment pitch
The UK’s Financial Conduct Authority (FCA) has put out a warning for financial influencers who could be sharing misleading advice online, including tips about popular crypto memes.
British Watchdog Issues Warning
Britain’s Financial Conduct Authority (FCA) said Tuesday that advice must be fair, clear and not misleading. If it’s not, so-called “finfluencers” could face up to two years imprisonment, an unlimited fine or both.
“Promotions aren’t just about the likes, they’re about the law,” the FCA’s director of consumer investments Lucy Castledine said in a statement. “We will take action against those touting financial products illegally.”
Disclosing any financial interests in the assets they promote is also required, as with any investment pitch.
“We’ve seen financial promotions be communicated on chatrooms such as Reddit and Telegram, often using memes to hype up specific investments,” the notice read. “Users of chatrooms or forums should be aware that financial promotions on these channels will still be subject to the financial promotion restriction.”
This applies to both public and invitation-only platforms, the FCA clarified.
Memes Big in Crypto
Memes are big in the crypto world, so big that meme coins and tokens are a massively popular and traded asset in the space.
Cryptocurrencies based on Internet memes and trends are often known for their extreme volatility and how quickly they appear—and disappear—often providing some lucky investors big gains. But many lose out trading them too.
FCA Offers Advice
The FCA also said that it had worked to help give advice to influencers who are considering promoting financial products.
Celebrities touting crypto is nothing new. Top influencers and famous athletes, including Kim Kardashian, boxer Floyd Mayweather and NBA star Paul Pierce, have previously run into trouble with US regulators for shilling cryptocurrency via their social media accounts.
