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In response to the rise in scams, the UK Financial Conduct Authority (FCA) has issued new guidelines to regulate memes used to market financial products, particularly cryptocurrencies.
FCA is committed to ensuring that all products, including memes, meet fair, open and accurate standards. Social media influencers (often referred to as “financial influencers”) now need the approval of an FCA-appointed agent to publish adverts or memes about financial products and services.
Consumer Investment Director Lucy Castledine spoke about the policy, stating that the support must be lawful and that the FCA would not allow individuals or companies to illegally promote financial products.
Recognizing the limitations of social media platforms in conveying difficult financial messages, the FCA is urging businesses to consider that platforms with restrictions are not good for promoting products.
FCA’s move follows a series of fake ads for financial services, totaling more than 10,000 ads. It was only removed from administration in 2022.
Crypto memes in particular have become an important tool for raising capital; Platforms like Telegram and Reddit have become hotspots for this type of content. The FCA addressed the prevalence of meme posting in chat rooms and forums and reminded users that financial sharing on these platforms is still subject to regulation.
Destroying memes is part of the FCA’s wider efforts to combat the spread of financial fraud. Fraud has increased during the Covid-19 pandemic as more consumers turn to online platforms for business and investment.
In October 2023, the FCA announced strict rules for companies seeking to support consumer cryptocurrency trading in the UK. Companies now need to be authorized or registered by the regulator or have their business activities approved by the authorized company; This is a sign of the regulator’s confidence in the way it manages the cryptocurrency market.