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Illegal crypto advertisements continue to proliferate in the United Kingdom, even as the Financial Conduct Authority (FCA) issues warnings and alerts to remove them. A recent report highlights that only 54% of the 1,702 alerts issued by the FCA between October 2023 and October 2024 resulted in the removal of these illegal promotions, leaving a significant number still active.
Key Takeaways
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54% of FCA alerts led to the removal of illegal crypto ads.
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Google Ads will require FCA registration for UK-targeted crypto promotions starting January 15.
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The FCA warns citizens against unauthorized crypto projects, including a specific memecoin.
The FCA's Struggle Against Illegal Crypto Ads
The FCA has been actively monitoring and attempting to regulate the crypto advertising landscape in the UK. Despite issuing numerous alerts, the effectiveness of these measures has been called into question. The report indicates that a substantial portion of illegal crypto ads remains online, raising concerns about consumer protection and regulatory enforcement.
The FCA's regulations stipulate that any digital asset promotions must receive prior approval from the FCA or an FCA-authorized entity before being published. However, the regulator has yet to impose fines on companies that fail to comply with these rules, focusing instead on financial influencers who promote these schemes.
Google Takes Action
In response to the FCA's regulations, Google Ads has updated its advertising guidelines. Starting January 15, 2024, advertisers promoting crypto exchange products and services targeting the UK must have FCA registration. This move aims to ensure that only compliant projects can advertise their services, thereby protecting consumers from potential scams.
Google will still allow ads for hardware wallets that do not facilitate buying, selling, or trading of cryptocurrencies, but advertisers must adhere to local laws in any region they target.
FCA's Warning on Memecoins
The FCA has also issued warnings to the public regarding specific crypto projects, particularly a Solana-based memecoin called Retardio. The regulator cautioned UK citizens to avoid engaging with this project, as it may be promoting financial services without the necessary FCA approval.
The FCA emphasized that consumers should only interact with FCA-approved companies to ensure their safety and access to consumer protection services. Engaging with unauthorized projects like Retardio could leave users without recourse to the Financial Ombudsman Service or the Financial Services Compensation Scheme, which are designed to protect consumers in the event of financial disputes or company failures.
Sources
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Illegal crypto ads prevail in UK despite FCA warning, Cointelegraph.