The financial and advertising regulators have published a seven-point checklist to ensure that these social media influencers adhere to the law.
UK financial and advertising regulators, the Financial Conduct Authority (FCA) and the Advertising Standards Authority (ASA), have issued a warning to social media “finfluencers” to avoid promoting illegal “get rich quick” schemes or face legal action.
They have issued a seven-point protocol to ensure that influencers adhere to the law. The protocol includes due diligence, FCA approval, and ASA advertising regulations compliance.
Additionally, the FCA and ASA advise influencers to check ScamSmart to ensure they are not promoting investment schemes. In France, it may soon be illegal for social media influencers to promote cryptocurrencies and NFTs from unlicensed companies.
Those found in violation of the law could face imprisonment and fines. Notable figures, including Kim Kardashian, Floyd Mayweather, and Jake Paul, have faced accusations of promoting crypto investment schemes.