The Financial Conduct Authority (FCA) is attempting to restrict illegal cryptocurrency marketing in the UK, but they remain prevalent. The FCA issued 1,702 alerts against non-compliant cryptocurrency adverts over a year, concluding in October 2024, but removed only 54% of them. This leaves over half of the flagged promotions ongoing, raising questions about the effectiveness of regulatory actions.
The FCA’s guidelines mandate the approval of cryptocurrency-related advertisements by the regulator or an FCA-authorized business prior to publication. However, enforcement has been spotty. While the agency has the right to levy penalties or take legal action against violators, it has yet to sanction corporations for failing to comply. Instead, the FCA has targeted financial influencers who promote dangerous schemes, bringing criminal charges against several individuals.
In response to these concerns, prominent advertising platforms are implementing additional precautions. Starting January 2025, Google will demand FCA registration for any cryptocurrency adverts targeting UK audiences. Local legislation will still permit advertisements for products like hardware wallets.
The FCA has also issued warnings on individual cryptocurrency schemes. For example, in December 2024, it flagged a Solana-based memecoin for operating without authority, warning customers to avoid prohibited financial services. Dealing with such projects exposes customers to severe risks, as the UK’s Financial Ombudsman Service or Compensation Scheme will not cover them, the regulator stressed.
Despite these steps, the FCA’s struggle to enforce compliance highlights the difficulties of regulating the quickly evolving cryptocurrency market. The UK’s progress towards full crypto legislation by 2026 raises the question of whether harsher fines and enforcement measures can bridge the supervision gap.
