Breaking: Financial Regulator Tightening Social Media Promotions And “Finfluencers” Rules
Crypto Market News: The UK financial market watchdog Financial Conduct Authority (FCA) on Monday said it will revise social media guidance to curb illegal and non-compliant financial promotions. The FCA will also prevent financial influencers from promoting products and services that harm customers. The FCA is again targeting the crypto market and influencers promoting crypto assets on social media platforms.
UK FCA To Revamp Social Media Rules
The Financial Conduct Authority (FCA) in a press release on July 17 said it is consulting on new social media guidance for promoting financial products and services on platforms to combat illegal and non-compliant financial promotions. The new social media guidance will be consulted over the next 8 weeks.
Lucy Castledine, Director, Consumer Investments at the FCA, said:
“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.”
The FCA is working with the Advertising Standards Authority to increase scrutiny over illegal financial promotions and advertising by “finfluencers” and companies. The regulators are also working to educate consumers and influencers about the risks in promoting financial products.
From October 8, the FCA will ban incentives to invest in crypto, such as “refer a friend” bonuses. Also, firms must introduce clear risk warnings and a 24-hour cooling period providing first-time investors enough time to consider their investment decision.
Emphasis on Crypto Promotions
The FCA seeks to crackdown on marketing strategies for new business models such as buy-now-pay-later and crypto assets focused on social media. Registered crypto exchanges and firms must comply with the social media promotions rules released in an earlier press release.
The regulators will also limit the use of memes to promote crypto assets as these are subject to the FCA rules. The firms are recommended to mention the risk warnings and restrictions in investing in crypto assets.
Also Read:
- Binance Announces Support To Terra LUNA Mainnet Upgrade, Price Shoots 10%
- Australia’s Big Four Banks Block Payments To Crypto Exchanges
- Terra Luna Classic L1TF On Guardarian Deal and Q3 Roadmap, LUNC Up 20% & USTC 50%
- XPL Token Soars 52% as Plasma Mainnet Launch Ignites Trading Frenzy
- ETH Treasury Firm SharpLink to Tokenize SBET Stock on Ethereum
- First Ethereum Staking ETF Begins Trading, Boosting ETH Demand
- Ethereum in a Bear Market, Peter Schiff Warns as ETH Slides Below $4K
- Trump Considers Jill Sommers and Kyle Hauptman for CFTC Chair Role
- HYPE Price Prediction As Bitwise Files For Hyperliquid ETF – Is $55 In Sight?
- Shiba Inu Price Eyes Recovery From Demand Zone With Burn Rate Soaring Nearly 400%
- Bitcoin Price: Analyst Predicts Crash to $104K Before Explosive Rally on Fed Cut Pattern
- HBAR Price Elliot Wave Signals an 86% Rebound as Key Risks Remain
- Will Pi Coin Price Recover Before Month-End After Payochain Listing?
- Chainlink Price Prediction as Whales Buy 800K LINK — Can the Demand Zone Launch a Recovery?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
