Financial Times reports that in the United Kingdom, crypto advertising regulation is becoming more difficult as the Financial Conduct Authority deals with widespread violation.
The FCA report shows that between October 20,23 and October 20,24 the FCA received 1,702 alerts about crypto advertisements which could be misleading, but only 54% led to removal of the content.
Despite the regulator’s authority to fine or prosecute violators, the FT states that it has focused much of its recent efforts on social media influencers promoting risky financial schemes. The report states that nine people, including reality television stars, face criminal charges. Investigations are ongoing in 20 other cases.
According to the FT however, former FCA Chair Charles Randell emphasized on the need for more robust enforcement. He said that he believes visible legal action against violators is necessary, such as tech platforms or crypto exchanges.
The FCA’s rules aim to safeguard investors by requiring firms to warn about the risks of losing their entire investment and banning referral bonuses. These measures have already had an impact, notably preventing Binance’s local partner, Rebuildingsociety.com, from approving promotional material in 2023.
UK’s crypto regime
This enforcement issue comes as the UK gets ready to introduce robust crypto regulations in early 2025. This new framework deals with oversight issues in fields like stablecoins. staking and digital assets services.
FCA already started a consultation with the public to help refine this upcoming regulation. The initiative aims at restoring consumer confidence in the industry by targeting market manipulations, financial fraud, as well as unclear disclosures.
Industry experts believe these steps are crucial for the UK’s competitiveness in the rapidly evolving crypto space.
By creating an innovative and balanced framework, the government hopes to drive investment and economic growth. If the government does not act quickly, it risks falling behind global peers such as the United States.
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
