Crypto influencers facing UK compliance scrutiny

Social media influencers promoting cryptocurrency trading platforms are failing to meet UK financial promotion standards in large numbers, raising questions about how prepared the industry is for tighter regulation of digital assets.

An analysis of 57 of the most-viewed posts promoting or advising on crypto products across TikTok and Instagram found that 89 per cent contained at least one potential compliance issue. The findings come as the Financial Conduct Authority prepares to introduce a new regulatory framework for crypto firms, increasing the pressure on businesses and their marketing partners to meet higher standards.

The research, conducted by financial promotions compliance platform Adclear, found that risk disclosure was the most common weakness. More than half of the posts analysed (56 per cent) made no reference to the financial risks associated with cryptocurrency trading. The proportion rose to 69 per cent on Instagram, compared with 43 per cent on TikTok.

Other shortcomings included a lack of balance between the potential risks and rewards of crypto investment, found in 40 per cent of posts, while 54 per cent failed to make clear that content was advertising, sponsored or part of a commercial partnership.