The UK Financial Conduct Authority (FCA) has made an important statement regarding meme coins.
After previously bringing the crypto sector under its oversight, the FCA had said last July that influencers could also be subject to these rules. It was noted that all individuals and entities promoting advertising and promotion related to cryptocurrencies need to be regulated.
The new guidance is focused on influencers promoting meme coins within this scope.
The regulatory body’s statement explicitly stated that meme coins are included in this regulatory scope:
All marketing constitutes financial promotion and is therefore subject to financial promotion restrictions. We have seen meme coins and other similar communications circulating within social media, and users are often not aware that these may fall within our rules. The guidance noted that meme coin promotions are particularly prevalent in the crypto asset sector.
