- ORIGINAL NEWS
The UK is regulating memes about crypto and other investments to curb scams from ‘finfluencers’
- SUMMARY
The Financial Conduct Authority (FCA) in Britain has issued guidelines for financial companies and social media influencers (finfluencers) who create memes about cryptocurrencies and other investments.
This comes amid a rise in scams and misleading promotions in the financial sector.
The FCA emphasizes that all marketing of financial products, including memes, must be fair, clear, and not misleading.
Finfluencers need approval from an FCA-appointed representative before they can publish advertisements or memes about financial products.
The FCA has recognized the prevalence of memes in promoting cryptocurrencies, particularly on platforms like Telegram and Reddit.
They have seen instances where memes have been used to hype up certain investments in chatrooms.
This move is part of the FCA’s efforts to crack down on financial scams, which have seen a sharp increase during the COVID-19 pandemic due to the rise of online banking and investment.
The FCA has taken down over 10,000 misleading adverts about financial services in 2022.
The FCA emphasizes that social media platforms with limited space, like Twitter, may not be suitable for promoting complex financial products.
Companies should carefully consider whether such platforms are the appropriate venue for advertising these products.
The guidelines aim to ensure that consumers receive accurate and transparent information about financial products and services.
They also protect consumers from financial scams and misleading promotions, which can potentially lead to significant financial losses.
- NEWS SENTIMENT CHECK
- Overall sentiment:
neutral
Positive
“The Financial Conduct Authority said in a statement Tuesday that any marketing for financial products — including those expressed in memes — should be fair, clear, and not misleading.”
“The watchdog said financial influencers, or “finfluencers,” must have the approval of an FCA-appointed representative to be able to make advertisements and memes about financial products.”
Negative
“The watchdog said that financial social media influencers, or “finfluencers,” must have the approval of an FCA-appointed representative before publishing advertisements and memes about financial products and services, the FCA said.”
“”Promotions aren’t just about the likes, they’re about the law. We will take action against those touting financial products illegally,” Lucy Castledine, director of consumer investments at the FCA, said in a statement Tuesday.”