The FCA’s assault on unlawful crypto ads in the UK in 2024 was insufficient, as only 54% of them were removed. This raises concerns about the efficacy of enforcement and regulation.
The Financial Conduct Authority (FCA) has attempted to limit the proliferation of illegal cryptocurrency ads, but they have not been successful. Nearly half of the advertising went unanswered out of 1,702 requests to delete illegal crypto ads that were sent to the FCA between October 2023 and October 2024 (54% action rate).
As a reminder of the risks in the crypto market, the FCA made it harder to sell crypto in June 2023. All promotions in the UK must be FCA authorized, per these rules. Noncompliance might result in severe penalties, such as up to two years in jail, a limitless fine, or both. The FCA issued a stern warning, threatening to blacklist businesses, restrict illicit advertisements, and launch enforcement actions. The FCA has not yet punished companies that disregard its instructions, which begs the question of how well it can discourage breaches given these warnings.
Charles Randell, a former head of the FCA, voiced his displeasure with the widespread noncompliance and stressed the need to penalize rulebreakers. Consumers are nonetheless vulnerable to high-risk investments that aren’t always in line with their risk tolerance due to a lack of enforcement. The regulator’s goal is to make sure that promotions are honest and don’t trick people, but a big problem is that they don’t do anything when people don’t follow the rules.
In spite of repeated warnings from the Financial Conduct Authority (FCA), some businesses persist in disobeying the regulations, including Binance and Pump.fun, owned by Solana. When the FCA marked Pump.fun as unauthorized in December 2024, the platform barred users from the UK. Binance, meanwhile, deregistered with the regulator in 2023 and halted onboarding UK customers.
In addition, by the first quarter of 2026, the FCA hopes to have completed its extensive crypto rules, which will address issues including stablecoins, loans, trading platforms, and market abuse. Nevertheless, a more robust strategy is required due to the regulator’s ineffectiveness in eliminating unlawful promotions. In spite of assurances of “strong action,” the FCA has failed to show any substantial improvement in handling the matter.
Consumers are worried that unlawful advertisements will continue to appear due to the FCA’s failure to enforce sanctions. According to the Financial Times, the results of 2024 were disappointing, indicating that the current strategy may require substantial modifications to guarantee compliance. Stricter enforcement and the implementation of stated fines are necessary for the regulator to achieve its aim of removing misleading information and protecting investors.
The need for efficient regulation is growing in relation to the expansion of crypto marketplaces. According to the FCA’s results in 2024, the dangers posed to UK consumers by unlawful marketing will persist unless the agency takes further action. The FCA can improve its supervision and address crypto sector noncompliance with the help of the forthcoming regulatory framework. It is still to be determined whether these steps will result in substantial improvements or if the regulator will encounter ongoing obstacles in its attempts to manage the market.
Also Read: Singapore will become Asia’s next crypto powerhouse with ‘risk-adjusted’ regulation
