UK regulators publish seven-point checklist on crypto advertising

The Financial Conduct Authority (FCA) and the United Kingdom’s Advertising Standards Authority (ASA) have joined forces to create a single set of rules for influencers promoting digital assets.

We’ve partnered with @ASA_UK and @SharonNJGaffka to help educate social media #influencers about the risks involved in promoting #financial products. https://t.co/IwQkcc90a9

— Financial Conduct Authority (@TheFCA) April 6, 2023

The regulators published контрольный список of seven points detailing the rules for crypto advertising.

The document on “finfluencers” asks them to consider whether they are “the right people” to promote the product. The agencies also reminded that their followers may “lose all their money” due to risky investments.

“Don’t tell your followers that digital assets are a simple investment solution, and don’t create a sense of urgency or FOMO,” the document says.

In addition to due diligence, bloggers must obtain FCA approval and ensure that the advertisement is legal, truthful, and labelled as sponsored material in accordance with ASA standards.

“If in doubt, don’t advertise,” the checklist slogan says.

Unlawful promotion of financial products or services is a crime punishable by up to two years’ imprisonment or a substantial fine, the regulators note.

The FCA and ASA also signed a partnership with former British reality TV participant Sharon Gaffka to underline the risks associated with crypto marketing.

Earlier, the UK authorities unveiled a three-year “Economic Crime Plan,” envisaging measures to strengthen countermeasures against the use of cryptocurrencies for criminal purposes.

In February, the FCA warned that violations of restrictions on promoting financial products could carry a prison sentence.