FCA Issues 1,702 Requests to Remove Illegal Crypto Ads in 2024
Illegal cryptocurrency advertisements persist in the UK, despite the Financial Conduct Authority (FCA) issuing 1,702 requests for removal between October 2023 and October 2024, with only 54% acted upon.
Stricter Regulations
The FCA implemented stricter rules for crypto advertisements in June 2023 to highlight market risks. Only FCA-authorized promotions are permitted, with non-compliance potentially leading to penalties such as up to two years in prison or unlimited fines. Despite warnings of firm actions like blacklisting and blocking illegal ads, the FCA has not penalized firms ignoring its orders, raising questions about its deterrent capabilities.
Compliance Challenges
Former FCA chair Charles Randell criticized the high level of non-compliance, stressing the need for penalties to protect consumers from high-risk investments that may not match their risk tolerance. The FCA aims for clear promotions that do not mislead the public, yet enforcement remains a significant challenge.
Industry Response
Some companies, including Binance and Solana’s Pump.fun, have ceased operations or restricted access in response to FCA warnings. For instance, Pump.fun blocked UK users after being flagged by the FCA in December 2024, while Binance stopped onboarding UK clients in 2023 following deregistration.
Future Regulatory Framework
The FCA is working on comprehensive crypto regulations set for completion by Q1 2026, focusing on market abuse, trading platforms, lending, and stablecoins. However, its limited success in removing illegal promotions indicates a need for stronger measures. The Financial Times noted disappointing results in 2024, suggesting that the current strategy requires significant adjustments to ensure compliance.
Consumer Protection Concerns
The ongoing presence of illegal ads raises consumer protection concerns. The FCA's efforts to eliminate misleading content are vital for safeguarding investors, necessitating both stricter enforcement and commitment to promised penalties.
Conclusion
As crypto markets expand, effective regulation becomes increasingly important. The FCA's performance in 2024 indicates that without intensified action, illegal promotions will continue to threaten UK consumers. The forthcoming regulatory framework presents an opportunity for enhanced oversight and decisive steps to address noncompliance in the crypto industry. It remains uncertain if these efforts will result in meaningful changes or if challenges will persist.