Despite intensified efforts by the UK’s Financial Conduct Authority (FCA) to regulate the digital asset space, illegal cryptocurrency advertisements continue to pervade the United Kingdom. The Financial Times reported that out of 1,702 warnings issued by the FCA between October 2023 and October 2024, only 54% resulted in the removal of non-compliant crypto advertisements. This leaves a significant portion of these promotions still active, circumventing regulatory oversight.
The FCA’s rules stipulate that digital asset promotions must receive approvals either directly from the FCA or an FCA-authorized business prior to their public dissemination. Yet, despite possessing the authority to impose fines or initiate criminal proceedings against non-compliant entities, the FCA has opted for a more restrained approach. Instead of targeting companies, the regulator has primarily focused its enforcement actions on financial influencers promoting unauthorized schemes online.
Google’s Stance on Crypto Ads in the UK
In response to the FCA’s regulations, Google Ads has revised its policies to align with the regulatory framework. Starting January 15, only advertisers with FCA registration can promote crypto exchange products and services in the UK. Google will also permit advertising for hardware wallets that store private keys for cryptocurrencies, non-fungible tokens (NFTs), or other digital assets, provided these do not offer buying, selling, or trading services.
Google has set no additional requirements for hardware wallets but has reiterated its expectation for advertisers to adhere to the local laws of any market they target through its platform.
Amid these regulatory challenges, the FCA has issued specific warnings about certain projects, such as the Solana-based memecoin, Retardio. On December 16, the FCA cautioned UK residents against engaging with this project, stating it may be offering financial services in the UK without the requisite authorization. The regulator emphasized the importance of dealing only with FCA-approved entities to ensure consumer protection in case of financial discrepancies.
Consumers engaging with unauthorized entities like Retardio will not have recourse to the Financial Ombudsman Service, which resolves financial disputes, or the Financial Services Compensation Scheme, which offers protection when firms fail.
What The Author Thinks
The ongoing struggle with illegal crypto ads in the UK underscores the complex interplay between burgeoning digital markets and established regulatory frameworks. While the FCA’s efforts to stem the tide of unauthorized crypto promotions are commendable, the persistence of these ads reveals the limitations of current regulatory approaches. This situation highlights the need for a more robust and adaptive regulatory strategy that can keep pace with the rapid evolution of cryptocurrency markets.
More stringent enforcement and broader compliance are essential, but they must be balanced with the development of clear, accessible guidelines that can guide both new and established players in the crypto space. As digital assets continue to integrate into mainstream financial systems, the clarity and effectiveness of regulatory policies will be critical in shaping the future landscape of global finance.
