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From October 8, 2023, to December 31, 2023, the Financial Conduct Authority (FCA) issued 450 warnings to companies engaged in the illegal promotion of cryptocurrency assets.
The regulatory body is currently collaborating with technology companies to eliminate and block unauthorized advertisements on various platforms such as websites, mobile applications, and social media accounts. This effort resulted in the removal of 35 applications from app stores by the end of December 2023.
FCA Cracks Down on Illegal Cryptocurrency Promotion Activities
In a recent announcement, the Financial Conduct Authority disclosed reviews of 44 cryptocurrency companies, all registered for anti-money laundering purposes, but some were unregistered, and their promotional activities were not approved by the FCA.
These assessments covered examinations of websites, mobile applications, social media, and advertising practices, revealing widespread non-compliance with regulatory standards.
Violations included the use of generic risk descriptions without adjustments for specific products like stablecoins or asset-backed coins, as well as leveraging regulated status for promotion.
Furthermore, the FCA instructed the withdrawal or modification of over 10,008 financial-related advertisements in the country during 2023.
The financial regulatory authority emphasized that some companies made unsubstantiated claims about the security, reliability, and user-friendliness of their cryptocurrency services while downplaying associated risks.
After agreeing to amendments on January 8, 2024, following the expiration, the FCA stated that it has been evaluating compliance with "backend" regulations.
"We will take action against non-compliance, utilizing our regulatory tools when we discover ongoing violations and may take enforcement actions if necessary.
Cryptocurrency Giants Forced to Exit Due to FCA Advertising Compliance Rules
Binance is among several cryptocurrency companies forced to cease operations in the UK.
The platform, Rebuildingsociety.com (REBS), responsible for approving Binance's promotional activities, was prohibited from endorsing cryptocurrency advertisements, posing an obstacle for the exchange to find another endorsing entity.
Simultaneously, ByBit, registered with the FCA, announced the suspension of services to UK customers before the implementation date on October 8. Likewise, Luno, under the DCG umbrella, was not registered with the regulatory authority, preventing certain UK customers from participating in cryptocurrency investments. |
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Post time 26-2-2024 20:58:00