The UK’s Financial Conduct Authority (FCA) looks set to tighten its oversight of crypto marketing and promotions with stricter rules that could take the fun out of crypto memes and finfluencer posts.
In new guidelines issued July 17, the FCA warns cryptoasset promotions, including memes and influencer posts, must comply with UK financial promotion laws or face regulatory penalties or even criminal prosecution.
The guidelines suggest:
- Crypto memes that imply unregulated investment advice could violate financial promotion laws. The FCA cites an example meme contrasting the ease of crypto payments versus traditional money.
- “Finfluencer” promotions on social media platforms like Reddit and Telegram may be illegal without proper FCA authorization. Unauthorized promotions could constitute a criminal offense under UK law.
Crypto firms have until October 8 to review how their promotions comply or face regulatory action. Memecoin projects relying heavily on memes may need to add legal disclaimers to stay within the new rules.
The FCA’s move signals an intent to crack down on potentially misleading crypto marketing while still allowing innovation. But the stricter approach could require crypto companies abandon some of the lighthearted memes and influencer tactics that helped spread crypto awareness.
The regulations may force crypto promoters to adopt a more serious, compliant tone. While this could protect investors, it risks making cryptocurrency marketing rather dull. However, stability and enforceable rules will likely be prerequisites for cryptocurrency’s long-term success and adoption.
In summary, the FCA guidelines seek to rein in potentially misleading crypto promotions while preserving space for legitimate firms. But only time will tell if an appropriate balance is struck between oversight and freedom in cryptocurrency marketing and communications. The fate of crypto memes and finfluencers under the FCA’s oversight remains unclear.
This article is based on the original news published on CryptoBriefing.