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

Illegal crypto ads remain widespread as the FCA struggles to crack down, data shows.

The British Financial Conduct Authority has failed to remove all illegal crypto ads as nearly half of flagged promotions still online, the Financial Times has learned, citing data obtained through a freedom of information request. Between October 2023 and October 2024, the FCA issued over 1,700 alerts about illegal crypto ads, apps, and websites. However, less than 55% were taken down.

The FCA has the power to fine or prosecute companies that break new rules requiring crypto ads to be approved by the regulator or an FCA-authorized business, the report notes. Despite this, no penalties have been issued so far.

Instead, the watchdog has focused on so-called “finfluencers,” influencers on social media who promote risky financial schemes. The regulator brought criminal charges against nine people, including reality TV stars, and is interviewing 20 more under caution.

“Ultimately, unless a very real and present threat of legal action is visible to both the [tech] platforms and to authorized crypto asset exchanges which issue noncompliant ads, we’re unlikely to see any change.”

Ex-FCA chair Charles Randell

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

Matthew Long, the FCA’s director of payments and digital assets, stressed the need to tackle market abuse while building a fair and transparent system for crypto traders. With 12% of U.K. adults now owning crypto, the FCA plans to develop balanced regulations, though the details are still unclear.

Long said the regulator aims to create rules that consider the “unique characteristics of crypto” and serve the best interests of investors.