The Financial Conduct Authority (FCA) in the United Kingdom has struggled to effectively manage the prevalence of illegal cryptocurrency advertisements, with only 54% of these ads being removed, despite ongoing regulatory measures. This information, reported by the Financial Times, was derived from data obtained through a freedom of information request. Over the period from October 2023 to October 2024, the FCA issued more than 1,700 alerts concerning illegal advertisements related to crypto, apps, and websites. Yet, fewer than half of these were successfully taken down.
The FCA, empowered to levy fines or initiate prosecutions against firms violating new regulations mandating the approval of crypto ads by the regulator or an FCA-authorized business, has not imposed any penalties to date. Instead, their focus has shifted towards “finfluencers”—social media influencers promoting high-risk financial schemes. Legal actions have been initiated against nine individuals, including reality TV personalities, with another 20 individuals currently being interviewed under caution.
Ex-FCA chair Charles Randell emphasized that without a strong and imminent threat of legal action posed to tech platforms and authorized crypto asset exchanges releasing noncompliant ads, significant change is unlikely. While broader crypto regulations are expected to be finalized within the UK by 2026, the ongoing strategy aims to address areas such as market abuse, trading platforms, lending, and stablecoins, with consultations on these issues slated to start in late 2024.
Matthew Long, the FCA’s director of payments and digital assets, underscored the importance of addressing market abuse while ensuring the establishment of an equitable and transparent system for crypto traders. With approximately 12% of UK adults now holding cryptocurrencies, the FCA plans to introduce balanced regulations, although specific details remain forthcoming. Long highlighted the goal of creating rules that accommodate the unique aspects of cryptocurrency, prioritizing the interests of investors. The FCA’s regulatory agenda seeks to balance the demands of innovation with safeguarding investor interests in the evolving crypto landscape.
