FCA struggles with crypto ads as UK looks to encourage crypto compliance News ▸ UK ▸ Regulation
FCA struggles with crypto ads as UK looks to encourage crypto compliance
Legal actions against social media influencers underscore the FCA's focus on those promoting risky financial schemes amidst widespread violations.
1 min read
Updated: Jan. 1, 2025 at 11:06 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The United Kingdom faces mounting challenges in regulating crypto advertising as the Financial Conduct Authority (FCA) grapples with widespread violations, the Financial Times reported on Jan. 1.
According to the report, the FCA issued 1,702 alerts against potentially misleading crypto ads between October 2023 and October 2024, yet only 54% resulted in content removal.
Despite the regulator’s authority to fine or prosecute violators, the FT states that it has focused much of its recent efforts on social media influencers promoting risky financial schemes. According to the report, nine individuals, including reality TV stars, are facing criminal charges, with investigations ongoing for 20 others.
However, the FT reported that former FCA chair Charles Randell emphasized the importance of more vigorous enforcement. He argued that visible legal actions against offenders, including tech platforms and crypto exchanges, are necessary to reduce the current high levels of non-compliance.
The FCA’s rules aim to safeguard investors by requiring firms to warn about the risks of losing their entire investment and banning referral bonuses. These measures have already had an impact, notably preventing Binance’s local partner, Rebuildingsociety.com, from approving promotional material in 2023.
UK’s crypto regime
These enforcement issues come as the UK prepares to introduce a robust crypto regulatory framework in early 2025. This new framework addresses oversight challenges in areas like stablecoins, staking, and digital asset services.
The FCA has already launched a public consultation to refine these upcoming regulations. The initiative targets market manipulation, financial fraud, and unclear disclosures, aiming to restore consumer trust in the sector.
Industry experts believe these steps are crucial for the UK’s competitiveness in the rapidly evolving crypto space.
The government hopes to attract investment and drive economic growth by creating a balanced and forward-looking framework. However, failure to act decisively risks leaving the country behind its global peers, such as the United States.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.