The UK Looks To Clamp Down On Illegal Crypto Ads

The United Kingdom Financial Conduct Authority (FCA) has not yet imposed penalties on companies that fail to eliminate illegal cryptocurrency advertisements. Despite clear instructions by the regulatory authority to remove such promotions, half of the prohibited ads remain online as of this writing.

It is worth mentioning that the FCA does not possess the authority to enforce the removal of unapproved content on online platforms and instead depends on negotiations with tech companies in good faith.

Exercising Authority

Data acquired via a freedom of information request shows that between October 2023 and October 2024, only 54% of the 1,702 alerts issued by the FCA led to the removal of illegal crypto ads, apps, or websites.

The regulatory body holds the power to levy fines or pursue criminal charges against entities breaching new regulations, which stipulate that crypto ads must be approved by the FCA or an FCA-authorized entity before they are published, or face the stringent actions the regulator has promised.

Clamping Down On Influencers

Sources familiar with the FCA suggest that the agency has not yet used its full authority, instead concentrating efforts on financial influencers promoting such schemes online. The FCA has launched criminal cases against nine individuals accused of endorsing unauthorized schemes involving high-risk derivatives on Instagram, including TV personalities known for shows like Love Island and The Only Way Is Essex.

In October of the prior year, the FCA revealed that it was interviewing 20 additional financial influencers who had been cautioned for unlawfully promoting financial products. Former FCA chairman Charles Randell stressed the necessity of penalizing firms that refuse to eliminate non-compliant content, arguing that substantial legal threats are essential to drive change among tech platforms and authorized crypto asset exchanges.