The Financial Conduct Authority, the UK’s financial watchdog, faces challenges in enforcing its rules on illegal crypto advertisements. Despite flagging 1,702 illegal cryptocurrency ads, websites, and apps between October 2023 and October 2024, only 54% were removed online, with nearly half still active and luring potential investors or unsuspecting victims, the Financial Times disclosed.
The FCA has the authority to regulate these advertisements and file criminal cases against individuals or groups that violate a new law that aims to fix the messy side of the country’s crypto markets.
The current rules allow the FCA to review and approve these ads or crypto-related businesses before publishing or running online. Despite this new rule and regulatory powers, the FCA has failed to implement them fully, raising serious concerns about its watchdog’s capabilities.
FCA Focuses On ‘Finfluencers’, Instead Of Big Crypto Companies
Although the UK’s crypto market has seen some dubious ads and marketing lately, the FCA failed to implement the law fully. According to some observers, the government watchdog instead focused its resources on regulating the “finfluencers” or the financial individual influencers that promote crypto projects and businesses. Many of these influencers are active on social media, particularly on Twitter/X, and they often post tweets and marketing messages that aim to convince followers to invest.
Just recently, the FCA filed complaints against nine individuals who marketed an unauthorized business with high-risk derivatives as products on Instagram. The watchdog has also filed complaints against TV stars who became popular in reality shows like The Only Way is Essex and Love Island.
In October 2024, the FCA shared that it was investigating 20 more influencers who were illegally marketing financial products.
