The Financial Conduct Authority (FCA) and the Advertising Standards Authority (ACA) of the UK recently released a 7-point checklist for social media "finfluencers" to adhere to in order to ensure that cryptocurrencies and nonfungible tokens (NFTs) investment drivers don't promote illegal money-making schemes. In addition, the FCA and ACA are introducing better education as a way to guard against unlawful promotional activities.
The FCA and ASA's checklist asks finfluencers to conduct a due diligence of the products they promote and to certainly seek the approval of the FCA. Also, they should ensure that their advertisements are true to the product, legal and properly labeled. Furthermore, the FCA advises finfluencers to use their ScamSmart checker to make sure that the investment is not a scam. Finally, the organization has also issued a warning to follow the message of "if in doubt, don't promote."
The FCA has noted a sharp increase in the illegal promotion of financial products, many of which don't realize the serious harm this may cause to followers. Thus, the FCA has partnered with former Love Island contestant, Sharon Gaffka, to emphasize the risks of marketing schemes. In addition, the FCA will also hold an open round table discussion with influencer agencies and the Influencer Marketing Trade Body.
Meanwhile, France is preparing to pass a law that will bar French influencers from promoting cryptocurrencies and NFTs from unlicensed firms. Those who are found to violate this rule may face two years' imprisonment and a fine of 30,000 Euros. In the past, celebrities such as Kim Kardashian, Floyd Mayweather and Jake Paul have found themselves in legal hot water for promoting crypto investment schemes.
Overall, the FCA and ACA are working together with influencers to educate followers about the risks associated with investing in cryptocurrencies and NFTs. This joint effort aims to create a more secure investment environment by informing investors of the associated risks. With this effort, the FCA aims to protect consumers from falling victim to financial scams.
Nicholas Howard
- 2023-04-07
FCA & ASA Push Influencers to Educate Followers of Crypto & NFT Risks
The Financial Conduct Authority (FCA) and the Advertising Standards Authority (ACA) of the UK have released a 7-point checklist for "Finfluencers" promoting illegal money-making schemes associated with cryptocurrencies and NFTs. They are also working with Former Love Island Contestant Sharon Gaffka and influencer agencies to create a more secure environment.
