FCA warned investors of the risks of seeking financial advice from influencers promoting cryptocurrency and forex trading as a way out of crisis situations. City AM writes about it.

The department representative told the publication that one of the posts on Instagram was the reason for the alert. The author, a merchant with over 100,000 followers, claims to have made a fortune of “about £2 million” 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 top.

“I found success in trading by learning the hard way and realizing that I could only save myself after losing all the money,” the account holder said.

FCA has expressed concern about such marketing materials. The ministry stressed that citizens should “avoid any advertisement from an unauthorized person” because in this case they are not protected by anything.

Personal finance analyst Myron Jobson supported the regulator’s position. According to him, the attempt to get out of the crisis through trade is “the recipe for sleepless nights”.

“Always take investment advice with a pinch of salt on social media and check the reputation of the advisers. It is important to use reliable sources when conducting research.

In the summer of 2021, the UK Advertising Standards Authority began considering the option to include a disclaimer in cryptocurrency-related ads.

Recall that in January 2022, the FCA issued a draft rule prohibiting marketing campaigns without evaluating the financial knowledge and experience of users.

The supervisor later approved stricter rules to combat misleading advertising associated with high-risk investment products. However, cryptocurrencies are not included in the document.

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