UK’s Financial Watchdog Begins Crackdown Against Crypto Scams Disguised As Memes

The growing rise in crypto and investment scams has left Britain’s financial services regulator with no choice but to crack down against such acts that could be disguised as deceiving marketing tactics.

This includes rolling out a new array of rules so that affiliated companies as well as influencers that design such memes regarding crypto and beyond can stop because scam rates have now reached a new high.

The news came in the form of a statement rolled out on Tuesday by the marketing division in charge of financial products. They expressed how such ordeals are now coming in the form of jokes and memes but there's a need to keep viewers informed about the factual truth versus another misleading ordeal.

Explaining the matter further by issuing a statement in this regard, the respective Authority added how any such acts would no longer be tolerated and strict against them would be taken.

Moreover, the watchdog adds how social media influencers need to first attain approval from an FCA-appointed body before rolling out ads and jokes linked to plenty of financial goods and services.

They added how such marketing acts are not just about getting a mere amount of fame in the form of likes but they have to do with the current law in place. This way, the company vows to take action against anyone and everyone flaunting such goods illegally as it’s against the law.

The FCA added how social media is never the right place to promote such kinds of products to begin with. Therefore, more companies need to now consider if a certain platform is offering limited characters or space and what the right place to do that would be.

Speaking more on this matter, there was a discussion in 2022 where it was forced to take action against close to 10k misleading ads regarding financial services.

Today, it’s amazing how the figures for misleading memes regarding crypto continue to spike. It’s become quite the norm to see these kinds of promotions arising with no checks and balances.

The regulator added how using memes in these kinds of promotions is very common, especially when it comes to apps like Telegram and Reddit where most of the youth go to for communication online.

This is also where these memes are discussed more in detail and various marketing strategies are then used to promote different investments on this front in online chatrooms. For this reason, it’s rolling out warnings against the act and therefore hopes people are well aware of different financial marketing attempts seen in such places as this is where they’re getting all the hype.

As mentioned by the FCA, all such designated spots need to be aware of the new guidelines and therefore function accordingly to avoid getting banned.

This is a clear attempt by the FCA to crack down on the growing increase in financial scams. So many people are talking about its rise during the COVID-19 pandemic as people are turning more and more towards social media to get their financial needs fulfilled including which investments would be best for them.

We’ve seen the FCA become quite aggressive over the years in this regard because it feels it’s about time someone spoke up on the matter regarding crypto ads serving as prominent leaders in misinformation.

In 2023, we even saw the regulator force companies wishing to market crypto in the United Kingdom to get authorization from respective regulators or get marketing approved through respective companies too.

Image: DIW-Aigen

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