for first-time investors, in order to comply with the new rules. <h2>Crypto-Related Memes Also Subject To Regulation</h2> Cryptocurrency-related memes that could encourage people to invest in crypto might also be subject to the new rules. The FCA is concerned that people, particularly young adults, may be exposed to crypto via social media without being aware of the associated risks. The FCA has also urged firms to review their social media accounts and remove any posts that breach the new regulations. Social media influencers will also need to review their content to ensure they are not promoting crypto or other risky investments without the required risk warnings.

• UK regulators are targeting crypto memes and “finfluencers” as new social media guidelines come into effect.
• The Financial Conduct Authority (FCA) will be banning incentives to invest in crypto such as ‘refer a friend’ bonuses and enforcing clear risk warnings for first-time investors.
• Crypto-related memes that encourage investing may also be subject to regulation, according to the FCA.

UK Regulators Targeting Crypto Memes and ‘Finfluencers’

Lawmakers in the UK are now targeting crypto memes and fintech influencers in an effort to enforce new social media guidelines. According to a new press release by the nation’s Financial Conduct Authority (FCA), the regulatory agency will be cracking down on illicit and non-compliant financial promotion starting in October.

Banning Incentives To Invest In Crypto

From October 8, 2023, the FCA will ban incentives to invest in crypto, such as ‘refer a friend’ bonuses. Firms must also introduce clear risk warnings and a 24-hour cooling period to give first-time investors time to consider their investment decision. These measures are similar to the regime in place for other high-risk investments.

Crypto Memes Subject To Regulation

The FAC also says that crypto-focused memes that encourage investing in digital assets may constitute as non-compliant promotions and could be subject to the law. According to Lucy Castledine, the FCA’s Director of Consumer Investments, “We have seen memes and other similar communications circulated on social media with users often not realizing they are subject to our rules…The use of memes in promotions is particularly prevalent in the crypto asset sector.”

Warning For Those Touting Products Illegally

Castledine added that those who break these rules could face action from regulators: “We want people to stay on the right side of our rules, so we’re updating our guidance…And for those touting products illegally, we will be taking action against you.”

Stay Up To Date On Regulatory Changes

It’s important for investors staying up-to-date on regulatory changes when dealing with cryptocurrencies or any type of investment product or service online. Investors should always do their due diligence before making any high risk investments.