UK Regulator’s 2023: 450 Alerts for Illegal Crypto Ads
The Financial Conduct Authority (FCA) in the UK has released a report outlining its actions against financial promotions and its efforts to crack down on crypto-related advertisements. The FCA discovered that there were high levels of non-compliance with the crypto promotion rules that were implemented on October 8, 2023. The regulator examined both registered and unregistered crypto firms and identified several common issues. These include the use of generic risk summaries that don’t address product-specific risks, such as stablecoins or asset-backed coins, and the use of regulated status in promotional activities. The FCA also found firms making unsupported claims about the safety, security, and ease of use of crypto services while downplaying the associated risks.
The FCA has warned firms that it will take action against repeated breaches of the rules, possibly through enforcement actions. Between October 8 and December 31, the regulator issued 450 consumer alerts against digital asset companies engaging in illegal crypto promotions. The FCA has been collaborating with technology companies to remove and block illegal promotions across websites, apps, and social media accounts. As a result, 35 apps were removed from app stores in December 2023. The FCA intends to continue taking action against firms issuing illegal promotions throughout 2024.
The FCA has expressed concerns about regulated firms failing to meet their obligations when providing supporting services to crypto companies that are illegally promoting their products to UK consumers. The regulator reported that it ordered the withdrawal or amendment of over 10,000 finance-related advertisements in the UK during 2023. The FCA received more than 24,000 reports regarding potential unauthorized businesses in 2023. These reports were escalated when credible evidence of a breach was found. The FCA is urging consumers to report misleading advertisements and potential scams through their official channels.
7 thoughts on “UK Regulator’s 2023: 450 Alerts for Illegal Crypto Ads”
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It’s reassuring to know that the FCA is committed to protecting UK consumers by removing illegal promotions across various platforms. Safety first!
The FCA needs to step up its efforts in removing illegal promotions from social media and other platforms. 35 apps removed is not enough!
I can’t believe how many unauthorized businesses there were in 2023. The FCA should have been more proactive in preventing them from operating! 😡
With more than 24,000 reports received, the FCA’s channels are serving as a reliable platform for consumers to report potential scams. Together, we can fight fraud!
These crypto firms need to stop downplaying the risks associated with their services. People need to be aware of the potential dangers!
With 450 consumer alerts issued, the FCA is determined to protect people from illegal crypto promotions. Thank you for looking out for us!
It’s disappointing to see that so many consumers are being scammed by misleading crypto advertisements. The FCA needs to do more to protect them!