British Regulator Warns Investors Against Cryptocurrency Influencers

British Regulator Warns Investors Against Cryptocurrency Influencers

British regulator warned investors against Cryptocurrency Influencers

The FCA has warned investors about the risks of financial advice from influencers promoting crypto and forex trading as a way out of crisis situations. City AM writes about this.

A representative of the department told the publication that one of the posts on Instagram became the reason for the warning. Its author, a trader with over 100,000 followers, claims to have made a fortune of “nearly £2m” after losing his father's savings.

To do this, he allegedly “traded smart” by buying bitcoin at a low price and closing the position at the peak.

“I have become successful in trading by learning the hard way and realizing that I can save myself only after I lose all the money,” the publication quotes the owner of the account .

The FCA has expressed concern about such marketing material. The department emphasized that citizens should “beware of any advertising from an unauthorized person”, since in this case they are not protected.

Personal finance analyst Myron Jobson supported the regulator's position. In his opinion, trying to get out of the crisis through trading is “a recipe for sleepless nights.”

“Always take investment advice on social networks with a grain of salt and check the reputation of those who give advice. It is important to use reliable sources when conducting research,” he added.

In the summer of 2021, the UK Advertising Standards Authority began to consider the option of including a disclaimer in advertising related to cryptocurrencies.

As a reminder, in January 2022, the FCA published a draft rule prohibiting marketing campaigns without assessing the financial knowledge and experience of users.

Later, the supervisory authority approved stricter rules to combat misleading advertising associated with high-risk investment products . However, cryptocurrencies were not included in the document.

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