FCA Cracks Down on Illegal Crypto Promotions
The Financial Conduct Authority (FCA) has taken action against companies promoting cryptocurrency assets unlawfully. From October to December 2023, the FCA issued 450 warnings to such companies. To combat this issue, the regulatory agency has partnered with technology firms to remove unauthorized advertisements from platforms like websites, mobile apps, and social media accounts. As a result of these efforts, 35 apps were removed from App Stores by the end of December 2023.
FCA Reviews Crypto Firms for Compliance
The FCA recently announced that it has reviewed 44 crypto firms, both registered and unregistered, to assess compliance with anti-money laundering regulations. The evaluations covered various aspects such as websites, mobile apps, social media, and advertising practices. The FCA found widespread non-compliance with regulatory standards, including the use of generic risk descriptions and misleading claims about safety and security.
Enforcement Actions and Compliance Assessment
The FCA instructed the withdrawal or amendment of over 10,008 finance-related advertisements in 2023. The regulator highlighted instances where companies made unsubstantiated claims and downplayed risks associated with crypto services. Following the expiration of the modification by consent on January 8, 2024, the FCA will take action against persistent breaches using its supervisory tools and potentially enforcement actions.
FCA’s Ad Rule Compliance Forces Crypto Giants Out
Binance was one of the crypto companies affected by the FCA’s ad rule compliance. It was forced to cease its operations in the UK due to restrictions imposed on its endorsing platform, Rebuildingsociety.com(REBS). ByBit and Luno also faced hurdles due to non-compliance. ByBit suspended services to UK clients prior to the implementation date, while Luno prevented certain UK clients from engaging in crypto investments.
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