Most crypto social posts breach FCA rules, study finds

JOSEPH GABRIEL LAGONSIN

News Editor

Adclear found that 89% of the most-viewed social media posts promoting cryptocurrency trading did not comply with Financial Conduct Authority rules. The finding was based on an analysis of 57 Instagram and TikTok posts.

The review looked at posts promoting or advising on crypto products and found that most contained at least one issue under FCA financial promotion guidance. It comes as the regulator prepares a new set of compliance requirements for crypto firms operating in the UK from 2027.

Social media has become an important source of information for retail investors considering digital assets. FCA consumer research cited alongside the analysis found that 29% of people who buy cryptoassets use social media to research them before purchasing.

Risk warnings

The most common problem was the absence of risk warnings. Across all posts analysed, 56% made no reference to the financial risks of trading cryptocurrency.

The rate was higher on Instagram, where 69% of posts made no mention of risk. On TikTok, the figure was 43%.

The review also found that 54% of posts did not disclose that the content was an advert, sponsorship, or partnership. Another 40% lacked balance in how they presented the risks and rewards of investing in crypto, while 30% did not make clear that past performance is not a reliable guide to future outcomes.

A smaller share, 7%, was judged not to be fair, clear, and not misleading under FCA standards. The analysis also found that 11% of posts promised guaranteed returns, even though cryptoassets are widely treated as high-risk products.

Regulatory backdrop

The findings come as the FCA sets out a broader regulatory framework for crypto firms in the UK. The planned changes are expected to introduce tighter rules on financial resilience and market integrity as the sector moves into a more formal supervisory regime.

The context matters because online personalities have become a prominent channel for crypto marketing, particularly among younger consumers. A compliance gap in that channel could draw greater scrutiny as the regulator focuses more closely on how financial promotions are presented to retail audiences.

Adclear’s automated compliance platform reviewed 57 posts tagged with #crypto that were published over a little more than a year. It compared the results with FCA expectations for financial promotions and concluded that non-compliance was widespread among so-called cryptofluencers.

The group said crypto-related influencer content appeared more compliant than posts promoting buy now, pay later products in its separate work, but less compliant than broader financial influencer content. It did not provide detailed comparative percentages in the material released.

Industry response

Joe Jordan of Adclear said the research pointed to basic disclosure failures rather than complex legal issues in many cases.

“As retail investing continues to attract a newer, younger generation of investors, crypto trading is set to become an increasingly mainstream part of our investing landscape. This is an exciting shift, but it also means we should expect to see more people turning to social media for trading knowledge and advice.

“With new rules on the way, this is a great moment for cryptofluencers to double down on aligning with FCA guidelines. Our analysis shows that many posts can improve their compliance with simple fixes, such as risk warnings or fully transparent ad disclosure. It’s an encouraging reminder that compliance isn’t necessarily complex. With the right checks and proper awareness of the rules, financial content across social media can become more trustworthy and transparent for everyone,” Jordan said.

The research adds to a growing debate over the role of online creators in marketing financial products. UK regulators have stepped up scrutiny of influencer promotions across investments, credit, and digital assets, arguing that consumers can be exposed to misleading or incomplete claims when content blurs the line between personal opinion and paid advertising.

For crypto firms, the issue is likely to become more acute as the UK brings the sector further inside the regulatory perimeter. Any business relying on social channels to reach potential customers may face pressure to tighten oversight of paid partnerships and unaffiliated endorsements alike.

The findings suggest that, at least in the sample reviewed, many of the most popular crypto posts still omit the warnings and disclosures UK rules require when high-risk investments are promoted to consumers.