Illegal cryptocurrency advertisements are proliferating in the UK, despite the Financial Conduct Authority (FCA) implementing stricter regulations in June 2023.
Between October 2023 and October 2024, the FCA issued 1,702 requests to remove unlawful crypto ads, yet only 54% were acted upon, leaving a significant number of promotions unaddressed.
The FCA’s guidelines stipulate that only promotions authorized by the FCA are permissible, with non-compliance potentially leading to severe penalties, including imprisonment and hefty fines. However, the FCA has not yet penalized any firms for ignoring these regulations, raising concerns about its effectiveness in deterring violations.
Former FCA chair Charles Randell expressed disappointment over the high non-compliance rates, emphasizing the necessity of enforcing penalties to protect consumers from high-risk investments.
While some companies, like Binance and Pump.fun, have complied by restricting operations in the UK, many others continue to disregard the rules. The FCA is working on a comprehensive regulatory framework expected to be finalized by Q1 2026, focusing on various aspects of the crypto market, including trading platforms and stablecoins.
Despite the FCA’s commitment to robust action, its limited success in removing illegal promotions indicates a need for a stronger enforcement strategy. The ongoing presence of misleading advertisements poses risks to consumers, highlighting the urgency for effective regulation in the rapidly evolving crypto landscape. The upcoming regulatory framework presents an opportunity for the FCA to enhance oversight and address noncompliance more decisively.
