The U.K.’s FCA and ASA are working with former Love Island contestant Sharon Gaffka to warn ‘finfluencers’ against promoting crypto scams.
Regulators in the United Kingdom are taking more action to prevent influencers from promoting crypto scams. This time, regulators have warned “finfluencers” against promoting crypto scams and get-rich-quick schemes.
Campaigns to Prevent Crypto Scams
The UK’s Financial Conduct Authority and Advertising Standards Authority have jointly worked together to launch a campaign to prevent these investments from recommending risky financial products. As part of their efforts, they are working with Sharon Gaffka, a former participant in the reality show Love Island.
Executive director of markets at the FCA Sarah Pritchard said of the campaign,
“We’ve seen more cases of influencers touting products that they shouldn’t be. They are often doing this without knowledge of the rules and without understanding of the harm they could cause to their followers. We want to work with influencers so they keep on the right side of the law, as this will also help protect people from being shown scams or investments that are too risky.”
The agencies have also released a checklist that eases the process. Authorities can sentence individuals who commit a criminal offense to up to two years in prison and an unlimited fine.
UK Regulators Scrutinize Crypto Advertising
The FCA has been ramping up its actions against bad actors in the crypto market. In particular, both it and the ASA have decided to clamp down on unlawful advertising.
In February, the agency released a notice about crypto promotions. Such promotions must be community by an FCA-authorised person, among other requirements. It’s a large step forward, as authorities feel that crypto assets have been too easily promoted in the country.
Crypto.com Accused of ‘Misleading’ Advertising Practices
Among those companies that have gained the attention of U.K. regulators is Crypto.com, which was recently accused of “misleading” and “irresponsible” advertising practices. The ASA stated that there the company “failed to illustrate the risk of investing in non-fungible tokens.” Crypto.com may also face scrutiny from Australian regulators for similar reasons.
The development indicates that governments worldwide want to stamp out irresponsible advertising. It’s been a long time coming, as the world is gearing up toward broader crypto regulations.
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