🌎 UK FCA Fails to Remove Half of Illegal Crypto Ads

UK’s FCA Struggles to Crack Down on Illegal Crypto Ads

According to recent data obtained through a freedom of information request, nearly half of illegal crypto ads flagged by the UK’s Financial Conduct Authority (FCA) remain online. Between October 2023 and October 2024, the FCA issued over 1,700 alerts about crypto ads, apps, and websites that failed to comply with regulations.

Despite having the power to fine or prosecute companies that break the rules, the FCA has yet to issue any penalties. The regulations require crypto ads to be approved by the regulator or an FCA-authorized business. However, less than 55% of flagged promotions were taken down during this period.

Focus on “Finfluencers” and Upcoming Regulations

The FCA has instead focused on addressing the issue of “finfluencers,” influencers on social media who promote risky financial schemes. The regulator has brought criminal charges against nine individuals, including reality TV stars, and is interviewing 20 more under caution.

“Ultimately, unless a very real and present threat of legal action is visible to both the [tech] platforms and to authorized crypto asset exchanges which issue noncompliant ads, we’re unlikely to see any change.”

This statement from ex-FCA chair Charles Randell highlights the need for stricter enforcement of regulations to effectively address the issue of illegal crypto ads.

Upcoming Crypto Regulations in the UK

The FCA plans to finalize broader crypto regulations by 2026. The framework will address key issues such as market abuse, trading platforms, lending, and stablecoins, with consultations beginning in late 2024. The UK is also set to unveil crypto and stablecoin rules early next year.

Matthew Long, the FCA’s director of payments and digital assets, stressed the need to tackle market abuse while building a fair and transparent system for crypto traders. With 12% of UK adults now owning crypto, the FCA aims to develop balanced regulations that consider the unique characteristics of crypto and serve the best interests of investors.

Some key points to note about the upcoming regulations include: