FCA flags 1702 crypto ads, only 54% removed so far

The UK’s Financial Conduct Authority (FCA) has stepped up its efforts to regulate crypto ads. During the year, the FCA found 1,702 crypto-related advertisements deemed illegal or non-compliant. According to the Financial Times, only 54% of flagged ads were removed despite these initiatives.

This difference draws attention to the major difficulties in enforcing accountability and compliance in the rapidly changing digital financial sector. The problem is exacerbated by the growing power of so-called “fin-influencers” who approve dangerous financial items, usually avoiding laws and exploiting legal loopholes.

FCA: Fighting Influential and Big Tech Collaboration

The FCA has not fully used its ability to levy fines or take legal action against companies that ignore the new rules. Instead, the emphasis is now on influencers who support unbridled financial items. Within this program, FCA investigated at least twenty others for their involvement in illegal promotions and took legal action against nine specific individuals.

In addition to these initiatives, the FCA has been working with major digital companies such as Google and Meta to help control the spread of illegal crypto ads. In order to prevent exposure to fraudulent schemes, these platforms have agreed to limit sponsored ads from unapproved companies.

Critics object that this voluntary agreement lacks the necessary legally binding authority to guarantee continued compliance. Former FCA chairman Charles Randell highlighted the need for legal action as the main deterrent to advertising breaches.

Google will implement stricter advertising guidelines for cryptocurrency-related content starting January 15, 2025.

This action should drastically reduce the number of illegal advertisements and protect users from wrong marketing strategies. While these developments indicate improvement, the effectiveness of these policies is still unknown, especially given the continued unrestrained players in the crypto market.

On the other hand, CNF previously discovered that UK authorities shut down Pump Fun, a site accused of operating without FCA permission. The cuts included blocking access to UK users. After these incidents, Pump Fun stopped livestreaming, claiming that a bad actor had misused their tool.