The British financial watchdog has put out a warning for financial influencers who could be sharing misleading advice online—including tips about popular crypto memes.
Britain’s Financial Conduct Authority (FCA) said Tuesday that advice “must be fair, clear and not misleading.”
If it’s not, so-called “finfluencers” could face up to two years imprisonment, an unlimited fine, or both.
“Promotions aren’t just about the likes, they’re about the law,” the FCA’s director of consumer investments Lucy Castledine said in a statement. “We will take action against those touting financial products illegally.”
Disclosing any financial interests in the assets they promote is also required—as with any investment pitch.
Memes are big in the crypto world—so big that meme coins and tokens are a massively popular and traded asset in the space.
Cryptocurrencies based on Internet memes and trends and are often known for their extreme volatility and how quickly they appear—and disappear—often providing some lucky investors big gains. But many lose out trading them, too).
The FCA also said that it had worked to help give advice to influencers who are considering promoting financial products.
Celebrities touting crypto is nothing new. Top influencers and famous athletes—including Kim Kardashian, boxer Floyd Mayweather and NBA star Paul Pierce—have previously run into trouble with U.S. regulators for shilling cryptocurrency via their social media accounts.
Edited by Ryan Ozawa.
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Source: https://decrypt.co/223756/british-regulator-finfluencer-disclosure-rules-meme-coins
