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

Data shows illegal crypto advertising continues to proliferate at a time when the FCA is trying to combat it.

The British Financial Conduct Authority has failed to remove all illegal crypto advertising because almost half of the promotions flagged are still online, the Financial Times reported, citing data obtained through a freedom of information request. The FCA issued more than 1,700 warnings about illegal crypto ads, apps and websites between October 2023 and October 2024. But less than 55 percent has been removed.

The report states that the FCA has the power to fine or prosecute companies that breach new rules requiring crypto advertising to be approved by the regulator or an FCA-approved business. Despite this, no punishment has been given so far.

Instead, the watchdog focused on so-called “financial influencers” who promote risky financial schemes on social media. The regulator has laid charges against nine people, including reality TV stars, and is discreetly interviewing a further 20 people.

“After all, unless the very real and present threat of legal action is apparent to both parties, [tech] “We are unlikely to see any change in terms of platforms and authorized crypto asset exchanges running non-compliant ads.”

Former FCA chairman Charles Randell

The British regulator plans to finalize broader crypto regulations by 2026. As crypto.news previously reported, the framework will address issues such as market abuse, trading platforms, lending and stablecoins, with consultations starting in late 2024.

The FCA’s director of payments and digital assets, Matthew Long, stressed the need to combat market abuse while creating a fair and transparent system for crypto traders. Given that 12% of adults in the UK now own cryptocurrency, the FCA plans to develop balanced regulations, although details are still unclear.

Long said the regulator aims to create rules that take into account the “unique characteristics of cryptocurrency” and serve the best interests of investors.