Reporters have confirmed that government officials in the UK have issued a seven parts checklist for social media influencers. This government-issued memo is directed towards the finfluencers or financial influencers as a guideline for crypto and other investment-related advice.
Under the regulatory guidelines of this memo, these influencers on social media platforms are required to ensure that their content remains within the bounds of the law.
This notification issued by the financial and advertisement regulators in the UK has also issued a warning for social media personalities to refrain from promoting scams. These guidelines have been created by Financial Conduct Authority in tandem with the Advertising Standards Authority or ACA.
Officials from both regulatory agencies have issued a public statement recently. The guidelines contain 7 laws or rules that every influencer on the social media platforms in the country must follow to avoid any clash with the regulators.
New Regulatory Guidelines for Influencers
The regulators in the country have mandated under the new regulatory memo that the influencers must share their credentials for offering any type of investment advice. Therefore, every social media personality must provide a disclaimer for their followers that informs about the potential market risks and the chance of losing their investment.
The statement issued by the regulators stated that they should not introduce cryptocurrency to their followers as a quick and easy way to make money.
Regulators have also advised the influencers to induce a sense of FOMO or urgency among their viewers. In addition, before promoting any crypto project, the influencers must perform due diligence as well as work under the approval of the Financial Conduct Authority or FCA.
They are also under an obligation to ensure that their crypto-promoting content is in line with ACA rules to make sure that they are not violating any marketing laws.
Both regulators have partnered with former Love Island contestant Sharon Gaffka to spread awareness about the risks associated with unrealistic marketing programs. UK regulatory agencies have also extended an invitation for a round table discussion with the influencers on the matter of crypto marketing and other investment ventures.
While regulators in the UK are making positive changes in the laws to ensure the security of their citizens, the regulators in France have adopted a different approach. French lawmakers have hinted at imposing a complete ban on all NFT and crypto promotional campaigns that hail from unlicensed firms.
However, the Economic Committee of the National Assembly voted for some more amendments to this proposal on 23 March.