UK Regulator Believes Crypto Memes Can be Considered as Promotional
- The UK Financial Conduct Authority (FCA) stated that crypto memes are promotional items.
- It released guidelines targeting promotional memes and financial influencers, or “finfluencers.”
- “A growing number of ads are falling short of the guidance,” said Lucy Castledine, a director at the FCA.
- The FCA has also teamed up with the Advertising Standards Authority (ASA) to educate influencers.
Content creators and crypto enthusiasts might have to stop making memes about cryptocurrencies and digital assets, or else they might face penalties in the United Kingdom. According to recent developments, the country’s financial regulator stated that content creators and crypto firms might have to introduce a disclaimer for viewers of memes based on virtual assets if they want to remain compliant with UK advertising laws.
As per a proposed guideline issued by the UK Financial Conduct Authority (FCA), on July 17, which targeted promotional memes and financial influencers—finfluencers,” it is crucial for their content to comply with the proposed rules to protect investors who do not have much knowledge about blockchain-based digital assets.
Lucy Castledine, Director, Consumer Investments at the FCA, noted that the UK regulator is seeing “a growing number of ads falling short of the guidance we have in place to stop consumer harm,” while adding:
“We want people to stay on the right side of our rules, so we’re updating our guidance to clarify what we expect of firms when marketing financial products online. And for those touting products illegally, we will be taking action against you,” Castledine said.
Additionally, the FCA has also teamed up with the Advertising Standards Authority (ASA) of the UK and aims to “educate consumers and influencers about the risks involved in promoting financial products.” This includes “infographics, roundtable discussions, and live events to build up awareness of the harm that can take place.”
The UK regulator noted that it has seen multiple memes circulating on social media that can be considered promotional material. Therefore, any type of communication could be considered a financial promotion.
As per an earlier report from Bitnation, the UK government officially recognized cryptocurrencies and digital assets as it passed the Financial Services and Markets Bill (FSMB). The bill was approved by King Charles and is similar to the European Union’s Market in Crypto Assets (MiCA) bill. It extends regulatory measures to cryptocurrencies and stablecoins and includes crypto trading as a regulated financial activity in the UK.
On the other hand, the new UK Prime Minister, Rishi Sunak, said he has plans to turn the UK into a crypto hub. However, the FCA said it has been working with the Metropolitan Police to investigate a number of locations in the East London area and will continue to search for and disrupt unregistered crypto ATM operations in the region.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
