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The UK’s financial services regulator has announced guidelines for financial services firms and social media influencers to create memes about cryptocurrencies and other investments in response to a rise in scams.
The Financial Conduct Authority said in a statement on Tuesday that any marketing of financial products – including those expressed in memes – should be fair, clear and not misleading.
The regulator said financial social media influencers, or “financial influencers”, must obtain approval from a designated representative of the FCA before publishing advertisements and emojis about financial products and services, the FCA said.
Lucy Castledine, the FCA’s director of consumer investment, said in a statement on Tuesday: “Promotions are not just about likes, they are about the law. We will take action against those who illegally peddle financial products.”
“Social media is not always the best place to promote complex products. Businesses need to consider whether a platform that offers a limited role or space is the right place.”
The FCA said it had removed more than 10,000 misleading adverts about financial services by 2022.
Promotional Crypto Memes
Regulators say the use of memes in promotions is particularly common in the cryptocurrency industry.
Crypto memes are particularly popular on Telegram, a platform popular with digital currency enthusiasts. Reddit is another place where cryptocurrencies are discussed extensively.
The FCA said it had discovered promotions using memes to promote certain investments on chat rooms such as Reddit and Telegram.
The FCA said users of chat rooms and forums should note that financial promotions on these channels are still subject to its rules.
The move is part of the FCA’s crackdown on financial fraud. Scam activity has increased dramatically during the Covid-19 pandemic as more consumers turn to online platforms for their banking and investing needs.
The FCA has become particularly aggressive when it comes to cryptocurrency advertising. In October 2023, the FCA began requiring companies wishing to promote consumer cryptocurrency investment in the UK to be authorized or registered by the regulator, or have their marketing activities approved by an authorized company.
