In 2023, the UK’s Financial Conduct Authority mandated the removal or revision of more than 10,000 advertisements related to financial matters.
An independent UK financial regulatory organization known as the Financial Conduct Authority (FCA) has released a report outlining its crackdown on financial marketing, including crypto-related ads.
Following the implementation of regulations governing the advertising of cryptocurrency on October 8, 2023, the FCA revealed “substantial levels of non-compliance” on February 14, 2023.
This includes using the regulated status for promotional purposes and presenting general risk summaries that do not account for product-specific dangers (e.g., stablecoins or asset-backed coins). In addition, the FCA has said that companies are making assertions about the security, convenience, and safety of crypto services without providing proof or mentioning any potential dangers.
The regulator issued a warning to businesses, stating that it will engage in enforcement proceedings if required in response to repeated breaches of rules. The FCA issued 450 consumer notifications against digital asset businesses unlawfully advertising crypto between Oct. 8, 2023, and Dec. 31, 2023, according to the agency. In their report, the regulator stated:
“There are websites, apps, and social media accounts that are promoting illicit products, and we are collaborating with tech firms to take them down. As an example, by the end of December 2023, our efforts will have led to the removal of 35 applications from app stores.”
The FCA has issued a warning to cryptocurrency businesses, stating that it will not rest until it takes action against companies in 2024 that provide unlawful marketing. The Financial Conduct Authority (FCA) has voiced its displeasure with regulated businesses that fail to fulfill their duties in aiding crypto companies that engage in unlawful product promotion to customers in the UK.
In 2023, the regulator also revealed that it had directed the removal or revision of more than 10,000 financial-related ads in the UK.
In 2023, the FCA received over 24,000 notifications about possible unlawful enterprises. Official routes were used to elevate complaints when solid proof of a breach was found, and the agency advised consumers to keep reporting potentially scamming or misleading ads.
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