FCA Warns Against Trusting Online Crypto and Stock ‘Influencers’

https://newsheadlinesuk.com/fca-warns-against-trusting-online-crypto-and-stock-influencers/81553/

The Financial Conduct Authority (FCA) has warned people in the UK against following financial advice from online crypto and forex influencers.

Financial influencers on YouTube and TikTok have reportedly used the cost-of-living crisis as an opportunity to promote cryptocurrency and app exchange trading, believing it could protect viewers from financial hardship.

This was reported by the FCA yesterday City AM that “people should always be wary of any action taken by someone unauthorized because you’re unlikely to be protected if something goes wrong.”

The spokesperson added: “We are working with the government to ensure financial content is included in the online safety bill, which means technology and social media companies have a role to play in protecting consumers.”

The Internet Security Bill and the Financial Services and Markets Bill, which deals with both financial regulators and crypto-assets, are two key pieces of legislation for the tech industry that Will have to deal with Liz Truss as the newly appointed Prime Minister.

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Regulators in the UK strongly warn against the promotion of crypto-assets and other risky financial investments.

In August, the FCA announced that it had finalized tougher rules decide on high-risk investments which target low-income investors and promise high returns.

Cryptocurrencies were not included in the August rule changes, as the regulatory framework for cryptoassets remains uncertain. However, a number of deceptively advertised crypto-asset investment opportunities have been targeted by UK watchdogs.

Premier League football club crypto asset promotion Arsenal came under fire from the Advertising Standards Authority (ASA) in August for ineffective risk communication.

The ASA follows another soccer crypto promotion in June, when the former Liverpool and England striker Michael Owen falsely claimed as part of the blockchain partnership that his NFT would never depreciate.