Britain's financial watchdog has issued a warning to finance industry KOLs sharing misleading advice online, including popular crypto meme tips.
On Tuesday, the UK Financial Conduct Authority (FCA) said advice “must be fair, clear and not misleading”.
Otherwise, KOLs could face up to two years in prison, unlimited fines, or both.
Lucy Castledine, FCA's consumer investment director, said in a statement:
“Advertising not only attracts likes but also must comply with the law. We will take action against those offering illegal financial products.”
Disclosure of any financial interest in the property they advertise is required as with any investment.
The notice said:
“We have seen financial promotions spread on chat rooms like Reddit and Telegram, often using memes to promote specific investments. Users of chat rooms or forums should note that financial promotions on these channels will still be subject to financial advertising restrictions. This applies to both public and invitation-only platforms.”
Memes are very important in the world of cryptocurrency, even so big that memecoins and tokens have become widely traded and popular assets in the space.
Cryptocurrencies based on memes and Internet trends are often known for their wild volatility and rapid appearance and disappearance, often bringing a few lucky investors big profits, but Many people also suffered heavy losses when trading them.
The FCA also said it has endeavored to provide advice to KOLs considering advertising financial products.
Celebrities touting cryptocurrencies is not uncommon. Top KOLs and famous athletes such as Kim Kardashian, boxer Floyd Mayweather and NBA star Paul Pierce have previously gotten into trouble with US regulators for promoting cryptocurrencies through accounts their social network.
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