Regulatory Proposals for a Balanced Framework for Finfluencers

The IOTA Foundation responds to the rising influence of financial influencers (finfluencers) in crypto by proposing clear, globally adaptable regulations. While finfluencers offer educational value, unregulated promotion risks investor protection and market integrity. Their recommendations to IOSCO include transparent disclosures, AI-powered oversight, international collaboration, and enhanced financial literacy as tools to create a more secure and trustworthy financial communication environment.

Key Ideas

Investor Protection through Regulation: Defining finfluencers by their intent and activity rather than compensation offers a nuanced framework for global policy. Measures aim to curtail misleading endorsements and foster responsible outreach.
Transparency and Global Cooperation: Mandatory disclosure of financial incentives and cross-border enforcement are supported by AI tools and digital identity systems. Financial education plays a central role in empowering retail investors to critically evaluate advice.

Creating B2B platforms that connect certified influencers with financial brands introduces a regulated marketing channel for product promotion. Automated compliance dashboards, disclosure modules, and trust-based ranking systems align business models with emerging legal expectations.