Only 54% of illegal crypto ads in UK removed despite FCA crackdown: report

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As a seasoned researcher with years of experience under my belt, I find myself deeply concerned about the current state of crypto regulation in the UK, particularly when it comes to illegal ads. The FCA’s efforts to address this issue seem insufficient, given that nearly half of flagged promotions remain online despite numerous alerts issued.

I can’t help but draw parallels with my own life, where I’ve often found myself playing whack-a-mole with pesky weeds in the garden – just when one pops up, another seems to appear somewhere else. It feels like a never-ending battle.

The focus on finfluencers is commendable, but it feels like they’re using a broom to sweep away a tsunami. The real threat lies with these illegal ads, and until the FCA takes decisive action against them, I fear we’ll continue to see this problem persist.

I find myself hoping that by 2026, when the FCA plans to finalize broader crypto regulations, they’ve managed to find a more effective solution than my garden hoe. Perhaps a digital version of Roundup would do the trick? After all, who wouldn’t want to kill two weeds with one spray?

Joke: I guess the FCA could always hire a certain cat from the internet – after all, it seems she’s quite good at dealing with pesky ads!

Illegal crypto ads remain widespread as the FCA struggles to crack down, data shows.

According to data obtained from a freedom of information request by the Financial Times, it appears that the British Financial Conduct Authority (FCA) has not been successful in removing all illicit cryptocurrency advertisements, as nearly half of the flagged promotions remain active online. Over the period between October 2023 and October 2024, the FCA issued more than 1,700 alerts concerning illegal crypto ads, apps, and websites, but less than 55% were successfully removed.

According to the report, the Financial Conduct Authority (FCA) possesses the authority to impose fines or take legal action against companies that violate fresh regulations mandating prior regulatory approval for crypto advertisements. However, as of now, no such penalties have been enforced.

Rather than concentrating on traditional targets, the regulatory body has turned its attention towards individuals known as “finfluencers” – social media personalities who endorse questionable financial ventures. The authority has filed criminal cases against nine individuals, among them reality TV stars, and is currently questioning 20 more under caution.

Essentially, it’s highly improbable that there will be any change in the situation if neither the tech platforms nor the authorized crypto asset exchanges face a tangible, immediate threat of legal repercussions for displaying non-compliant ads.

Ex-FCA chair Charles Randell

By 2026, it’s expected that the UK regulatory body will conclude a more comprehensive set of cryptocurrency regulations. Previously reported by crypto.news, this framework aims to tackle concerns like market manipulation, exchange platforms, lending practices, and stablecoins. Consultations for these new rules are slated to commence towards the end of 2024.

Matthew Long, head of Payments and Digital Assets at the Financial Conduct Authority (FCA), emphasized the importance of addressing market manipulation as a priority when constructing a trustworthy and transparent platform for cryptocurrency traders. Given that 12% of British adults currently own cryptocurrencies, the FCA intends to create reasonable regulations; however, specifics regarding these rules remain undetermined.

Long stated that the regulatory body intends to establish guidelines which take into account the distinct attributes of cryptocurrencies, with a focus on protecting the welfare of investors.

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2025-01-01 10:16