Illegal cryptocurrency advertisements continue to surface in the United Kingdom, defying the strict mandates of the country’s financial regulator. Despite the Financial Conduct Authority (FCA) urging crypto projects to halt their unauthorized promotional campaigns targeting UK citizens, these ads remain prevalent.
A report by the Financial Times highlights the scale of the issue. Between October 2023 and October 2024, the FCA issued 1,702 alerts against non-compliant cryptocurrency promotions. While 54% of these warnings resulted in the removal of illegal ads, the remaining promotions remain active, undermining regulatory efforts.
FCA Yet to Penalize Non-Compliant Advertisers
Although the FCA has the authority to impose fines or initiate criminal proceedings against companies violating its advertising regulations, no penalties have been enforced thus far. Current regulations stipulate that all digital asset promotions must be pre-approved by either the FCA or an FCA-authorized entity before being disseminated to the public.
Rather than targeting businesses directly, the FCA has focused on combating financial influencers, commonly referred to as “finfluencers,” who promote unregulated crypto schemes online. This strategy aims to address a growing trend of social media influencers driving risky financial behavior among consumers.
Google Tightens Crypto Ad Policies for the UK
Reflecting the FCA’s stricter stance on crypto advertising, Google Ads has updated its own policies to align with the regulator’s requirements. Starting January 15, 2025, advertisers offering cryptocurrency exchange products or services targeting the UK must obtain FCA approval before launching their campaigns on the platform.
Google will allow advertisements for specific products, such as hardware wallets for storing cryptocurrency private keys and non-fungible tokens (NFTs), provided these do not facilitate buying, selling, or trading activities. The tech giant also emphasized that advertisers must adhere to local regulations in any targeted jurisdiction, reinforcing the importance of compliance.
FCA Alerts Citizens About Risky Crypto Projects
In its ongoing efforts to protect consumers, the FCA recently issued a warning about Retardio, a Solana-based memecoin. On December 16, the regulator cautioned UK citizens against engaging with the project, citing its lack of FCA authorization to promote financial services within the country.
The FCA stressed the importance of dealing exclusively with FCA-approved entities. This ensures that consumers have access to safeguards such as the Financial Ombudsman Service, which resolves disputes, and the Financial Services Compensation Scheme, which provides financial protection if a firm collapses. Engaging with unauthorized projects leaves consumers vulnerable, without recourse to these protections in case of financial loss.
The persistence of illegal crypto advertisements in the UK highlights the challenges regulators face in enforcing compliance in a rapidly evolving digital landscape. While measures such as stricter advertising policies by Google and targeted warnings against risky projects like Retardio are steps in the right direction, the need for robust enforcement mechanisms remains paramount. For UK citizens, vigilance and adherence to FCA guidelines are critical to navigating the crypto space safely.
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