Crypto News- The Financial Conduct Authority (FCA) recently sounded the alarm, revealing that it issued a staggering 450 warnings to companies unlawfully promoting cryptocurrency assets from October 8 to December 31, 2023.
In an aggressive move against unauthorized advertisements, the regulatory agency has teamed up with tech firms to stamp out these promotions across various platforms, including websites, mobile apps, and social media accounts. By the end of December 2023, this collaboration resulted in the removal of 35 apps from major App Stores.
FCA Raises Alarm Over Crypto Advertising: 450 Alerts Issued in Quarter
The FCA’s battle against illegal crypto promotions doesn’t stop there. In a recent announcement, the agency disclosed its scrutiny of 44 crypto firms, both registered and unregistered, to evaluate their compliance with anti-money laundering regulations. The findings revealed widespread non-compliance, particularly in promotional materials across websites, mobile apps, and social media platforms.
Among the violations uncovered were the use of generic risk descriptions and the exploitation of regulated status for promotional purposes. Additionally, over 10,008 finance-related advertisements were either withdrawn or amended in the UK during 2023.
FCA’s Advertising Regulations Prompt Exodus of Crypto Industry Leaders
The FCA emphasized its commitment to taking action against breaches, including enforcement measures where necessary. This resolve has already forced prominent crypto players like Binance to halt operations in the UK, following compliance challenges with the FCA’s advertising rules.
As the FCA continues its crackdown, the crypto industry faces a period of upheaval, with giants like ByBit and Luno also feeling the heat of regulatory scrutiny. ByBit suspended services to UK clients ahead of the regulations’ implementation date, while Luno, not registered with the regulator, limited crypto investments for certain UK clients.
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