TechFlow reports that according to new guidance proposed by the UK financial regulator (FCA), cryptocurrency firms and influencers may soon need to add disclaimers to memes or images shared online in order to comply with the UK's advertising laws.
On July 17, the FCA published a proposed guidance on financial promotions via social media, focusing specifically on meme-based promotions and influencer activities. The FCA noted that it has observed widespread circulation of memes related to cryptocurrency companies online, with many people unaware that such memes are subject to financial promotion rules. Memes are particularly common in the crypto space, where any form of communication could potentially be classified as a financial promotion.
Under the FCA’s proposal, memes that fail to meet financial promotion requirements could result in penalties including up to two years in prison. The public is invited to comment on the proposed guidance, with the consultation period open until September 11.
