Crypto Advertising Crackdown: UK Regulator Struggles to Keep Up
The United Kingdom’s Financial Conduct Authority (FCA) has been sounding the alarm about illegal crypto advertisements, but the problem persists. Despite issuing multiple warnings, a recent report reveals that only 54% of the 1,702 alerts sent between October 2023 and October 2024 led to the removal of illegal promotions.
Lax Enforcement Raises Concerns
The FCA has the power to impose fines and pursue criminal charges against companies that violate advertising regulations, yet it has not taken such actions against non-compliant companies. This lack of enforcement has raised concerns about the effectiveness of the regulator’s efforts.
Strict Guidelines for Crypto Promotions
To operate legally, all digital asset promotions must receive approval from the FCA or an FCA-authorized business before publication. The regulator has emphasized the importance of compliance, warning UK citizens about the risks associated with unauthorized projects.
Google Ads Updates Guidelines
In response to the ongoing issues, Google Ads has updated its advertising guidelines to align with FCA requirements. Starting January 15, 2025, advertisers promoting crypto exchange products and services targeting the UK must obtain FCA registration. The platform will allow advertisements for hardware wallets that do not facilitate cryptocurrency transactions, but expects all advertisers to comply with local laws.
Retardio: A Cautionary Tale
The FCA has specifically warned about the potential risks associated with Retardio, a Solana-based meme coin. The regulator cautioned that the project might be promoting financial services within the UK without the necessary FCA authorization. This highlights the importance of dealing only with FCA-approved companies to ensure protection.
Consequences of Non-Compliance
Individuals who engage with unauthorized projects like Retardio may find themselves without access to the Financial Ombudsman Service, which resolves financial complaints, or the Financial Services Compensation Scheme, which offers protection if firms go out of business. It is crucial for consumers to exercise caution and prioritize their financial security.
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