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Illegal cryptocurrency advertisements remain rampant in the UK, with the FCA’s attempts to curb them facing significant challenges.
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Despite new regulations introduced in June 2023, a troubling level of noncompliance persists, raising questions about the FCA’s enforcement effectiveness.
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“We want to provide clarity and prevent harm to consumers from investing in cryptoassets that do not match their risk appetite,” emphasized an FCA spokesperson.
UK crypto ads remain unchecked, with FCA requests for removal seeing only 54% compliance, highlighting ongoing regulatory challenges in the sector.
FCA’s Crypto Ad Takedown Requests Go Unanswered
According to a Financial Times report, between October 2023 and October 2024, only 54% of the 1,702 alerts issued by the FCA led to the removal of illegal crypto ads. The remaining promotions remain active, demonstrating a significant gap in compliance.
The British regulator announced in 2023 that if crypto firms fail to comply, they will face penalties, including up to two years in prison and unlimited fines.
“We will take robust action against persons illegally promoting to UK consumers. This may include, but is not limited to, placing firms on our warning list, taking steps to remove or block any illegal financial promotions such as websites, social media accounts and apps, and enforcement action,” stated the FCA.
Moreover, only FCA-authorized crypto promotions are allowed to be published in the UK.
Despite efforts from the FCA, data shows that removal rates remain alarmingly low, with many illegal promotions still circulating.
Former FCA chair Charles Randell pointed out that without strong enforcement measures, the regulatory framework risks becoming ineffective. “Penalizing companies that fail to abide by listing rules is essential to address the frustrating level of noncompliance we see,” he added.
The Ratio of Illegal Crypto Ads Identified and Removed by the FCA. Source: Financial Times
The latest developments follow the FCA’s announcement in November that it plans to finalize crypto regulations in the UK by Q1 2026. The areas of focus will include combating market abuse, regulation of trading platforms, oversight of lending practices, and the regulation of stablecoins.
More recently, Solana’s Pump.fun restricted access to UK users following warnings from the British regulator. In December 2024, the FCA revealed that this platform is unauthorized to operate in the UK, resulting in restricted access to its website.
Similarly, Binance halted onboarding new users after its registration with the FCA was canceled in 2023. “This firm can no longer provide regulated activities and products, but previously was authorised by the FCA and/or PRA,” the FCA stated.
Overall, while the FCA has been striving to regulate the UK’s crypto landscape, the results of its efforts have been less than satisfactory. The ongoing issuance of illegal advertisements in the market highlights the urgent need for a reassessment of the FCA’s strategies to effectively ensure compliance in the future.
Conclusion
The persistence of illegal crypto promotions in the UK underscores significant gaps in regulatory enforcement by the FCA. With only 54% of takedown requests acted upon, it raises fundamental questions about the impact of current regulations. Moving forward, a stronger emphasis on accountability and penalization might be necessary to enhance the effectiveness of the regulatory framework and protect consumers from harm.
