The UK’s Financial Conduct Authority (FCA) is facing challenges in its efforts to ban cryptocurrency advertisements, with only half of the ads being taken down and no penalties issued to companies so far. According to the Financial Times, out of 1,702 alerts issued by the FCA, only 54% resulted in the removal of illegal advertisements, apps, and websites.
Former FCA chair Charles Randell expressed frustration over the lack of compliance, stating that the regulator needs to start penalizing companies to see a change. He emphasized the importance of legal action to motivate tech platforms and authorized crypto asset exchanges to remove non-compliant ads.
One of the obstacles for regulators is the difficulty in compelling tech and social media platforms to ban unauthorized content, relying instead on voluntary cooperation. Randell suggested that regulators may need to ensure platforms are motivated to block these ads through collaboration with authorities like Ofcom and criminal prosecution agencies.
Despite the challenges, the FCA noted progress in working with tech companies to regulate banned advertisements. However, the regulator remains concerned about the prevalence of fraud and scams online. Many social media platforms have already banned paid-for adverts for UK financial services from non-FCA authorized firms, and the FCA continues to take action against those violating the rules.
In conclusion, the FCA is facing hurdles in enforcing the ban on cryptocurrency advertisements, but efforts are being made to address non-compliance and protect consumers from potential scams. Stay informed by subscribing to email alerts and following updates on social media platforms like Twitter and Facebook.