FCA Faces Challenges in Enforcing Crypto Ad Ban

The UK’s Financial Conduct Authority (FCA) is facing significant challenges in its efforts to limit illegal cryptocurrency promotion. Despite stringent controls, half of these ads are reportedly still airing in the UK, which begs the question of enforcement gaps.

Limited Success in Tackling Non-Compliant Ads

Only 54% of identified ads, apps, and websites have been removed as a result of the FCA’s efforts, according to data gathered through a freedom of information request and reported by the Financial Times. Almost half of the illicit content is still available despite 1,702 notifications. No violating companies have yet to face sanctions from the regulator.

Charles Randell, former chair of the FCA, expressed frustration over the lack of compliance. He stated, “Ultimately, unless a very real and present threat of legal action is visible to both the [tech] platforms and to authorized crypto asset exchanges which issue non-compliant ads, we’re unlikely to see any change.”

Randell highlighted a key issue: regulators cannot mandate social media and tech platforms to block unapproved ads. Instead, they rely on voluntary cooperation. “When the platforms are sufficiently motivated to block these ads they can and will… The regulators — including both the FCA, Ofcom and if necessary the criminal prosecution authorities — may need to ensure that the platforms have that motivation,” he added.

The FCA asserts it is making headway in addressing the issue. In a statement, the agency noted, “Many social media sites have now banned paid-for adverts for UK financial services from non-FCA authorized firms, and we continue to [take] action against those we find breaching our rules.” However, the regulator remains “concerned about the prevalence of frauds and scams online.”

While the FCA reports improved collaboration with tech companies, experts argue that stronger enforcement measures, including legal penalties, are necessary to drive compliance. Without visible repercussions for non-compliance, the ban’s effectiveness may remain limited.