UK regulator issues 450 alerts for illegal crypto ads by 2023
The Financial Conduct Authority (FCA) – the UK's independent financial regulatory body – has published a report outlining its findings and actions it has taken against financial promotions, including actions against crypto-related ads.
In the year On February 14, the FCA reported that it had found “significant levels of non-compliance” in the crypto promotion rules that came into force on October 8, 2023. According to the regulator, I reviewed both registered and unregistered crypto firms and identified the common ones. issues
This includes the use of general risk summaries for product-specific risks such as stablecoins or asset-backed coins, and the use of adjusted status in a promotional way. The FCA also said the firms were making claims about crypto services without supporting evidence or risks.
The regulator has warned that it will regularly take action against companies that breach the rules and use enforcement measures as necessary. The regulator highlighted that between October 8 and December 31, 2023, the FCA issued 450 customer alerts against digital asset companies illegally promoting crypto. The moderator wrote:
“We are working with tech companies to remove and block illegal promotions, including websites, mobile applications (apps), and social media accounts. For example, our work resulted in the removal of 35 apps from the App Store by the end of December 2023.”
The FCA has warned that it will continue to crack down on firms offering illegal promotions in 2024.
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Meanwhile, the regulator has reportedly ordered the removal or modification of more than 10,000 financial advertisements in the UK by 2023.
The FCA highlighted that in 2023, it received more than 24,000 reports of unauthorized business activities. The agency stated that the reports escalated when actual evidence of the violation was presented; Consumers are also urged to continue reporting misleading advertisements and scams through official channels.
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