FCA Yet To Shut Down Illegal Crypto Ads Despite Promise of Tough Action

Key Takeaways

• Many illegal crypto ads remain online despite FCA warnings.
• Only 54% of banned ads were removed following FCA directives issued last year.
• Former FCA chair calls for tougher penalties on firms violating advertising rules.

The Financial Conduct Authority (FCA), the UK’s financial watchdog, is struggling to enforce its crackdown on illegal crypto advertisements.

Despite issuing threats to remove such ads, nearly half of the flagged content remains online, raising questions about the regulator’s ability to curb the issue.

46% of Illegal Crypto Ads Still Online

Data obtained through a freedom of information request reveals that only 54% of the 1,702 alerts issued by the FCA between October 2023 and October 2024 resulted in the removal of illegal ads, apps, or websites.

This means 46% of the flagged content continues to operate in defiance of the agency’s directives.

The FCA introduced new regulations requiring crypto ads to gain prior approval from the agency or an FCA-authorized entity.

Non-compliance could lead to fines or even criminal charges.

However, enforcement appears inconsistent, with many firms failing to take down non-compliant content despite warnings.

Crypto Influencers in the Crosshairs

Instead of pursuing tech platforms or major advertisers, the FCA has primarily focused on targeting so-called “finfluencers,” social media personalities promoting high-risk crypto schemes.

The regulator has initiated legal action against nine individuals for promoting unauthorized financial products on platforms like Instagram.

The group includes reality TV stars from shows like Love Island and The Only Way Is Essex.

In addition to these prosecutions, the FCA has warned 20 influencers about promoting unregulated crypto services, signaling a shift toward individual accountability in combating misleading crypto promotions.

Former FCA Chair Calls for Stronger Action

Former FCA Chair Charles Randell has called for more aggressive measures to tackle non-compliance.

Randell argues that penalties are essential to compel tech platforms and authorized exchanges to remove illegal ads and curb the spread of misleading content.

The former FCA Chair asserted that legal threats were necessary to drive change among tech platforms and authorized crypto asset exchanges.