JAKARTA - The UK is working on enforcing the latest social media guidelines related to financial promotions, with lawmakers now targeting crypto memes and their influencers.
According to an official statement from the Financial Conduct Authority (FCA), this supervisory agency will be more stringent in supervising illegal and non-compliant financial promotions, especially those taking place online. The FCA is aware of the increasing popularity of influencers and potential loss risks for consumers caused by unauthorized promotions.
Starting on October 8, 2023, the FCA will ban incentives to invest in crypto, such as a "friend-referenced" bonus. In addition, the company must include a clear risk warning and impose a 24-hour cooling period to give investors the first time to consider their investment decisions. These measures are in line with the protections imposed on other high-risk investments.
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In addition, in its new guidance, the FCA also states that crypto memes that encourage investment in digital assets can also be considered invalid promotions and can be punished.
The FCA warns companies that all forms of communication, including meme coins and similar content on social media, can be considered financial promotion and must comply with applicable regulations. The FCA has noted that users often do not realize that they comply with this rule when interacting with meme coins.
Lucy Castledine, FCA Consumer Investment Director, stressed the importance of updating guidelines to stop consumer losses. The FCA wants to ensure the company follows the guidelines correctly when marketing financial products online. For those who violate the rules and promote products illegally, the FCA will take firm action against these violators.
With this move, the authorities hope to protect consumers from potential risks and ensure that crypto markets and other investments operate with better integrity and compliance.
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