FCA Yet To Penalize Firms For Illegal Cryptocurrency Ads

According to Odaily, the UK's Financial Conduct Authority (FCA) has not yet penalized companies for failing to remove illegal cryptocurrency advertisements. Despite the FCA's directive to take down such promotions, half of the banned ads remain online. Data obtained through a freedom of information request reveals that between October 2023 and October 2024, only 54% of the 1,702 alerts issued by the FCA resulted in the removal of illegal crypto ads, apps, or websites. The regulatory body has the authority to fine or pursue criminal charges against groups violating new laws, which mandate that crypto ads must receive approval from the FCA or an FCA-authorized firm before publication, or face "tough" actions promised by the regulator. Insiders familiar with the FCA's procedures indicate that the agency has not yet exercised its new powers, instead focusing on "finfluencers," or financial influencers who promote such schemes online. The FCA has initiated criminal proceedings against nine individuals accused of promoting unauthorized schemes related to high-risk derivatives on Instagram, including TV personalities known from shows like "Love Island" and "The Only Way Is Essex." In October of the previous year, the FCA announced that it was interviewing an additional 20 financial influencers who had been warned for illegally promoting financial service products. Former FCA chairman Charles Randell emphasized the importance of penalizing companies that refuse to remove non-compliant content, stating that significant legal threats are necessary to drive change among tech platforms and authorized crypto asset exchanges. It is understood that the FCA lacks the power to mandate the removal of unapproved content from online platforms and instead relies on good-faith negotiations with tech companies. Tom Fosh from the law firm Eversheds Sutherland noted that issuing alerts alone still plays a role in raising consumer awareness about cryptocurrency scams.