According to new guidelines introduced by the UK's Financial Conduct Authority (FCA), the violation of crypto asset advertising faces an unlimited fine and imprisonment of up to two years.
These guidelines are an addition to the recently passed Financial Services and Markets Act, which affects the regulation of the crypto sector in the UK.
According to the document:
"S21 has a broad territorial application. It applies even where a communication originates outside the UK if it is capable of having an effect in the UK."
The creators of ads promoting crypto assets may need to include a disclaimer.
The updated rules could be critical for related meme-based token projects.
The document also discusses the extension of S21 to "finfluencers" - opinion leaders on financial topics.
According to the FCA, posts on Reddit and Telegram may contain unintended advertising. Finfluencers may not realize they are subject to S21 restrictions.
The FCA has previously warned crypto industry participants to comply with the advertising regime, which will come into force on October 8, 2023.