With so many high-profile bankruptcies last year, such as Celsius Network, Voyager Digital, Three Arrow Capital (3AC), and FTX crypto exchange, regulators around the world including the UK have been compelled to tighten the rules as well as enlighten users and influencers on crypto schemes and investments.
Just recently, the authorities in the United Kingdom have discovered an initiative that will help to stop influencers from promoting illegal financial and investment schemes.
UK Financial Watchdog- The Financial Conduct Authority (FCA) and the Advertising Standards Authority (ASA) in collaboration with Love Island Star- Sharon Gaffka have started enlightening fin-influencers (financial influencers) on the risk and consequences of promoting illegal schemes dubbed “get rich quick”.
Notably, both regulatory authorities are concerned about the mismanagement of social media by so-called influences and the dangers it poses to followers. Hence, an urgent need to work with the influencers so they are aware of the rules and laws guiding their activities, most especially the financial markets.
UK Regulators set Guidelines for Influencers
Additionally, UK regulators including the ASA and FCA also teamed up together to create a graphic visual representation of data and information (infographic) that will assist influencers whenever they are faced with an opportunity to promote any financial product. However, any influencer caught making an unlawful financial promotion will be sanctioned by ASA and will be faced with a minimum of 2 years imprisonment sentence as well as unlimited fine payment.
In the same vein, a seven-part checklist was uploaded to also help influencers get more insight into illegal financial promotion. As such, all finfluencers are strongly advised to check SamSmart to confirm they are not involved in promoting crypto and investment scam.
Recall that in Nov 2022, the United States watchdog, the Securities and Exchange Commission (SEC) started trailing many crypto influencers, investors, founders, and their crypto projects. As reported by thecoinrise.com, several Hexicans influencers were subpoenaed by the SEC over HEX, PulseChain, and PulseX.
In a bid to protect users and consumers from certain risks, France lawmakers have proposed a ban on the promotion of some financial products and services, not excluding investments in digital assets by electronic means. The proposal which was reviewed by the economic affairs committee targets also placed a ban on influencers advertising health products, gambling, and video games, amongst others.
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