UK Ad Rules Apply to Influencers, Crypto Memes, Regulator Confirms in New Guidance
The UK's Financial Conduct Authority (FCA) has announced that social media influencers and crypto memes are subject to the country's rules for financial promotions. The FCA stated that any communication can be considered a financial promotion and is therefore subject to regulation. This includes memes and other social media content, particularly in the crypto-asset sector. The guidance is based on the FCA's promotions regime, which prohibits businesses from communicating an "invitation or inducement to engage in investment activity" unless it is communicated by an authorized person or someone with an exemption. Crypto firms and promoters must now register with the FCA or have their ads approved by a credentialed individual. They must also include clear risk warnings on websites and communications and provide first-time buyers with a 24-hour cooling-off period before finalizing purchases.
