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Britain's financial services regulator has announced guidelines for financial services firms and social media influencers who make memes about cryptocurrencies and other investments in a bid to tackle a rise in fraud.
The Financial Conduct Authority said in a statement on Tuesday that any marketing of financial products – including that expressed in memes – must be fair, clear and not misleading.
The watchdog said financial social media influencers, or “influencers,” must obtain the approval of a representative appointed by the FSA before publishing ads and memes about financial products and services.
“Promotions are not just about likes, they are about the law. We will take action against those who promote financial products illegally,” Lucy Castledine, the FCA's director of consumer investments, said in a statement on Tuesday.
“Social media will not always be the best place to promote complex products. Businesses need to consider whether a platform that offers personalities or limited space is the right place to do so.”
The Financial Supervision Authority said that in 2022, it removed more than 10,000 misleading advertisements about financial services.
Promotional crypto memes
The use of memes in promotions is particularly prevalent in the cryptocurrency industry, the regulator said.
Crypto memes are particularly popular on Telegram, a popular platform with cryptocurrency enthusiasts. Reddit is another place where cryptocurrencies are widely discussed.
The financial watchdog said it had seen promotions using memes to stimulate certain investments in chat rooms such as Reddit and Telegram.
The Financial Conduct Authority (FCA) said users of chat rooms and forums should be aware that financial promotions on those channels will still be subject to its rules.
The move is part of the Financial Conduct Authority (FCA)'s attempt to curb the rise in financial fraud. Fraud has risen sharply during the COVID-19 pandemic as more consumers turn to online platforms for their banking and investment needs.
The Financial Conduct Authority (FCA) has become particularly aggressive regarding cryptocurrency advertising. In October 2023, the Financial Conduct Authority (FCA) began requiring companies wishing to promote investment in cryptocurrencies to UK consumers to be licensed or registered with the regulator, or obtain approval to be marketed by an approved company.
