UK Financial Watchdog Issued 450 Alerts on Illegal Crypto Promotions in Last Three Months of 2023
The Financial Conduct Authority said firms approving ads need to take their regulatory obligations seriously.
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- The Financial Conduct Authority issued 450 consumer alerts on firms illegally promoting crypto between Oct. 8 and Dec. 31 last year.
- The regulator warned it will continue to take robust action.
The U.K. financial regulator said it issued 450 consumer alerts in the last three months of 2023 against firms illegally promoting crypto and called on authorizing companies to take their responsibilities seriously.
The Financial Conduct Authority (FCA)'s rules on promotions kicked in on Oct. 8. The alerts were issued between then and Dec. 31, it said in a report on Wednesday.
In order to advertise, crypto companies have to be registered with the authority or have their ads approved by a company that's authorized to do so. The rules require firms to include risk warnings and to have a 24-hour cooling off period for first time buyers.
"We will be continuing our robust action against firms issuing illegal financial promotions in 2024," the FCA said.
Some companies, including Binance, the largest crypto exchange, have had to suspend U.K. services as a result. Binance's promotions approver, Rebuildingsociety.com was told it could not approve crypto ads, and the exchange has encountered difficulties finding another approver.
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Camomile Shumba is a CoinDesk regulatory reporter based in the UK. She previously worked as an intern for Business Insider and Bloomberg News. She does not currently hold value in any digital currencies or projects.