FCA Struggles to Remove 46% of Illegal Cryptocurrency Ads in the UK

• 46% of illegal cryptocurrency ads remain online in the UK.
• FCA targets influencers but faces legal limits against platforms.
• New regulations on crypto assets should be finalized by 2026.

The UK’s Financial Conduct Authority (FCA) is facing significant challenges for combat illegal cryptocurrency advertisements. Data released shows that, between October 2023 and October 2024, of the 1.702 cryptocurrency advertisements, applications and websites considered irregular and flagged by the agency, only 54% were effectively removed.

This means that around 46% of the ads remain active, exposing unsuspecting investors to potentially fraudulent schemes. Despite having the legal authority to fine or prosecute offenders, the FCA has not yet penalised any firms for non-compliance.

The FCA’s strategy has focused on so-called “finfluencers,” digital influencers who promote cryptocurrency schemes to large audiences on social media. Nine people have recently been prosecuted for promoting unauthorised financial products, including high-risk derivatives. Some of the defendants gained notoriety on popular reality TV shows such as Love Island.

In addition, 20 other influencers are under investigation for promoting illegal financial services. These actions are part of stricter rules for social media promotions introduced by the FCA in March 2024.

While the FCA has struck voluntary agreements with tech giants such as Google and Meta to block unapproved ads, these collaborations are not legally binding. Many platforms allow ads to run without legal consequences, highlighting the agency’s limitations in forcing the removal of inappropriate content.

With plans to implement comprehensive regulations by 2026, the FCA aims to tackle market abuses, strengthen oversight of trading platforms and establish clear guidelines for stablecoins and crypto lending. The proposals include preventing public offerings of crypto assets by unregulated entities and requiring authorized firms to share information to combat irregularities.

Matthew Long, director of payments and digital assets at the FCA, reinforced the importance of protecting investors while promoting the growth of the cryptocurrency sector, highlighting the rise in digital asset ownership in the UK, which now reaches 12% of the adult population.