To help inform financial influencers about the dangers of promoting "get-rich-quick schemes" like cryptocurrency and non-fungible tokens (NFTs) to their followers, the Financial Conduct Authority (FCA) has partnered with the Advertising Standards Authority (ASA), Sharon Gaffka, a social media influencer who previously appeared on Love Island.

The #FCA and the ASA announced in their announcement of April 6 that they will speak with financial influencers and their representatives to determine whether information might be construed as an unlawful financial promotion. They also provided a seven-point checklist to make sure finfluencers adhere to the law.

Financial influencers, sometimes known as "finfluencers," should not presume that their audience fully understand what they are advocating.

According to Sarah Pritchard, executive director of markets at the FCA:

“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.”

The checklist advises finfluencers to determine whether they are the "appropriate person" to promote the financial product and cautions that their fans run the risk of "losing all their money" if they make the investment.

Additionally, they are cautioning influencers about the risk of unintentionally exposing their followers to criminals due to the rise in investment frauds.

It contains a warning that followers may lose all of their money if they invest in cryptocurrencies and that the ASA would take legal action if the laws governing the promotion of #Cryptocurrencies and #NFTs are broken.

If adopted, the proposed regulation will include cryptocurrencies among a list of items—along with drugs and gambling—that influencers are not allowed to promote.

The FCA issued a warning in 2019 after learning that victims of an investment scam involving cryptocurrencies and foreign currency trading lost an average of £14,600. The scammers frequently advertise their get-rich-quick trading platforms on social media, the agency said.

Following the FCA's annual financial promotions report, which said that the regulator's action led to 8,582 promotions being altered or discontinued during 2022, the campaign was announced.

This news is republished from https://coinaquarium.io/