Crypto memes can be seen as financial promotions, UK watchdog says

Memes found to violate financial promotion rules could face up to two years in prison under an FCA proposal.

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Crypto companies and influencers may need to start enforcing crypto meme disclaimers to stay compliant with UK advertising laws, says new guideline proposed by regulator financial institution of the country.

On July 17, the Financial Conduct Authority (FCA) published proposed guidance on financial promotions on social media that targets promotional memes and financial influencers: "finfluencers".

Too many people across the UK are receiving financial promotions from inappropriate sources.

We will step up our work to root out illegal financial promotions, especially those found on social media. #financialpromotions #financialservices https://t.co/sK8r5ExxVm

— Financial Conduct Authority (@TheFCA) July 17, 2023

The FCA said it has seen crypto firm memes circulating online that many do not realize are subject to its promotional rules.

He said promotional memes are particularly prevalent in the crypto industry and added that any type of communication could be considered financial promotion.

Example of a meme related to crypto investment FCA considering financial promotion. Source: FCA

The FCA considers crypto to be a high-risk investment. It can be advertised to general retail investors, but there are requirements such as including risk warnings and prohibiting investment inducements...