The UK faces growing challenges regulating crypto advertising as the Financial Conduct Authority (FCA) grapples with widespread violations, the Financial Times reported on January 1.
According to the report, the FCA issued 1,702 warnings for potentially misleading crypto advertising between October 2023 and October 2024, but only 54% resulted in content removal. Ta.
Despite regulators having the power to fine and prosecute violators, the FT has focused much of its recent efforts on social media influencers promoting risky financial schemes. He said there was. Nine people, including the reality TV star, have been charged with criminal offenses, and investigations into the remaining 20 people are ongoing, the report said.
However, the FT reported that former FCA chairman Charles Randell stressed the importance of stronger enforcement. He argued that visible legal action against violators, including technology platforms and crypto exchanges, is needed to reduce the current high level of non-compliance.
The FCA’s rules aim to protect investors by requiring companies to warn them about the risk of losing their entire investment and prohibit referral bonuses. These measures are already having an impact, particularly as Binance’s local partner Rebuildingsociety.com will no longer be able to approve promotional materials in 2023.
UK cryptocurrency system
These enforcement issues come as the UK prepares to introduce a robust cryptocurrency regulatory framework in early 2025. This new framework will address oversight challenges in areas such as stablecoins, staking, and digital asset services.
The FCA has already launched a public consultation to improve these future regulations. The initiative targets market manipulation, financial fraud and non-transparent disclosure and aims to restore consumer confidence in this area.
Industry experts believe these measures are critical to the UK’s competitiveness in the rapidly evolving cryptocurrency space.
The government wants to create a balanced and forward-looking framework to attract investment and foster economic growth. But unless decisive action is taken, the country risks falling behind its peers around the world, including the United States.
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