The Securities and Commodities Authority (SCA) has launched what it calls the Middle East’s first “Finfluencer” license, a regulatory move designed to formalize and supervise digital financial content across the United Arab Emirates. This initiative aims to establish a clear governance framework for individuals offering investment analysis, recommendations and financial promotions on digital platforms.

H.E. Waleed Saeed Al Awadhi, CEO of the SCA, emphasized the strategic importance of this development. “Introducing the Finfluencer license is not merely a regulatory measure; it is a strategic move to redefine the role of regulators in the digital economy,” Al Awadhi stated.

According to the SCA executive, his organization hopes to elevate global benchmarks of market integrity and nurture a disciplined and trustworthy financial environment. He added that the SCA sees itself as enabling transformative change via its “forward-thinking” regulatory models that evolve with the financial and investment landscape.

A statement released by the regulator said the new license is available to individuals who provide financial or investment recommendations concerning regulated products or entities within the UAE, whether through digital or traditional media.

Eligible applicants must register with the SCA and adhere to all applicable regulatory obligations, ensuring the highest standards of investor protection and bolstering public trust in local capital markets.

The UAE regulator’s move to regulate finfluencers comes amid an explosion of individuals on social media platforms who offer financial advice, tips and recommendations. Many of these finfluencers have followings far exceeding those of traditional financial advisors. However, quite often these finfluencers lack formal financial qualifications, industry experience or regulatory oversight. This creates a high risk of them providing unverified, misleading or even harmful financial advice.

To illustrate, a study by Coinwire found that memecoin-promoting social media influencers on X with more than 200,000 followers saw 39% of investors acting on their advice generate negative returns after just one week and 89% after three months. Therefore, to rein in influencers and protect UAE-based investors, the SCA now requires finfluencers offering financial recommendations related to the purchase, sale, or holding of a financial product or virtual asset to register with it.

This requirement also applies to those who engage the public through content, visuals, advice, recommendations and discussions related to financial investments or specific financial products within the UAE.

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