Pump.fun Restricts Access for Users in the UK
The team behind the memecoin launchpad pump.fun has begun restricting UK users following a designation from the UK’s Financial Conduct Authority (FCA) labeling it unauthorized. Most firms must obtain FCA approval for finance-related operations in the UK. This is pump.fun's first public restriction despite previous criticism regarding its moderation practices.
Pump.fun allows users to launch Solana-based tokens for approximately $2. Recently, the platform removed its livestreaming feature due to violent and disturbing content going viral.
According to Shardspace co-founder Avaunt, this UK restriction does not constitute a ban. It suggests that pump.fun likely failed to register and comply with UK crypto regulations, prompting regulator action.
Pump.fun has connections to the UK, notably when former contractor Jarett Dunn was arrested in London after exploiting the platform. Dunn has claimed that pump.fun is associated with a UK entity named Baton Corporation.
The platform's pseudonymous founder stated that pump.fun is not legally based in the UK but did not provide further details. Given the UK's regulatory environment, it is surprising that pump.fun faced restrictions only now. The FCA has previously taken down over 900 scam crypto websites and more than 50 apps since October 2023.
Anonymous Raydium contributor Tom remarked that IP address restrictions are common in the industry, questioning the reaction to pump.fun's actions. Despite being one of the most popular apps on Solana and in crypto this year, pump.fun's notoriety has attracted scrutiny, particularly concerning its controversial livestreams. If SEC Chair Gary Gensler remains in office, potential regulatory action against pump.fun might follow.
The outcome of the situation surrounding pump.fun’s livestream incident will be significant to observe, as regulators may succeed where public criticism has not, potentially impacting a startup that generated $283 million in revenue within its first year.