Memes create great appeal for some in the crypto space, but spreading misinformation can land influencers in jail.
Pepe has become one of the biggest memes on the internet (Photo: Giolina163/Wikimedia Commons)
Britain's financial regulator has issued a warning to influencers sharing misleading advice online – including references to popular memecoins.
Financial Conduct Authority (FCA) of Great Britain. he said Tuesday (26) said the advice should be “fair, clear and not misleading”. Otherwise, so-called “finfluencers” can face up to two years in prison, an unlimited fine, or both.
“Ads are not just about preferences, they are about law,” FCA consumer investment director Lucy Castledin said in a statement. “We will take action against those who advertise financial products illegally.”
They are also required to disclose any financial interest in the property they are promoting – as with any investment offer.
“We've seen financial ads being communicated in chat rooms like Reddit and Telegram, often using memes to promote specific investments,” the warning says. “Users of chat rooms or forums should be aware that financial advertising on these channels is still subject to financial promotion restrictions.”
“This applies to both public and invited platforms,” the FCA clarified.
Memecoin fever
Memes are big in the crypto world – so big, memecoins are the most popular and traded asset in the space.
Cryptocurrencies are based on internet memes and trends, their extreme volatility and how quickly they appear and disappear – often offering big profits to some lucky investors and big losses to other investors who trade late.
The FCA also said it would help advise influencers it believes are promoting financial products.
Celebrities promoting cryptocurrencies is nothing new. Top influencers and famous athletes — including Kim Kardashian, boxer Floyd Mayweather and NBA star Paul Pierce — have previously run into trouble with US regulators for promoting cryptocurrencies through their social media accounts.
*Authorized and translated by Gustavo Martins Encryption.
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