UK Issued 450 Warnings for Illegal Crypto Ads in 2023
15 Feb, 2024 ● Crypto News
The Financial Conduct Authority (FCA), an autonomous financial regulatory entity in the UK, has released a report detailing its efforts against financial promotions, including its investigations and measures taken regarding advertisements related to cryptocurrencies.
As of February 14, the FCA announced that it had discovered "significant levels of non-compliance" with crypto promotion regulations implemented on October 8, 2023.
The agency conducted assessments on both registered and unregistered crypto firms and identified common issues.
These issues encompass the use of generic risk summaries without tailoring them to product-specific risks like stablecoins or asset-backed coins, as well as leveraging regulated status in promotional activities.
Additionally, the FCA noted that firms were making claims about the safety, security, and user-friendliness of crypto services without substantiating evidence or adequately disclosing risks.
The FCA cautioned firms that it would address persistent breaches of regulations and could resort to enforcement actions as necessary.
Between October 8 and December 31, 2023, the FCA issued 450 consumer alerts against digital asset companies unlawfully promoting cryptocurrencies. The agency stated:
"We are collaborating with technology firms to eliminate and block illicit promotions, including websites, mobile applications (apps), and social media accounts.
For instance, our efforts led to the removal of 35 apps from app stores by the end of December 2023."
Moreover, the FCA warned crypto companies of continued action against those issuing unlawful promotions in 2024.
The agency expressed concern over regulated firms failing to fulfill obligations when providing support services to crypto companies unlawfully promoting products to UK consumers.
In parallel, the regulator disclosed that in 2023, it mandated the withdrawal or modification of over 10,000 financial-related advertisements in the UK.
Additionally, the FCA stated that it received more than 24,000 reports regarding potential unauthorized businesses in 2023.
These reports were escalated when credible evidence of a breach was identified, and consumers were encouraged to continue reporting misleading advertisements and potential scams through official channels.
Sources:
https://cointelegraph.com/news/uk-illegal-crypto-ads-regulator-fca
