Between the 8th of October, and the 31st of December, the financial watchdog cracked down on hundreds of illegal crypto advertisements as part of its broader efforts to tackle non-compliant financial promotions. 

The alerts come on the back of the FCA announcing the new regulations which came into effect 8 October last year. The rules stated that those marketing crypto to UK consumers would need to introduce a cooling-off period for first time investors. 

According to them, over 10,000 finance-related promotions were withdrawn or amended throughout the whole of the year. 

“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 has resulted in 35 apps being removed from App Stores at the end of December 2023,” read the FCA report. 

The FCA’s actions underscore the ongoing effort to maintain the integrity of the financial services industry amidst the rapid growth of the cryptocurrency market. 

The rules also said crypto firms provide people with the appropriate knowledge and experience needed to invest responsibly in it, and must put in place clear risk warnings and ensure adverts are clear, fair, and not misleading.

In a new report, the FCA revealed significant levels of non-compliance with these crypto promotion rules introduced in October 2023. The regulator scrutinised both registered and unregistered crypto firms, identifying several common issues. Among these were the use of generic risk summaries that failed to address product-specific risks such as stablecoins or asset-backed coins.

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Additionally, some firms were found to be leveraging their regulated status in promotional activities, making claims about the safety, security, and ease of use of crypto services without substantiating evidence or adequately highlighting associated risks.

The regulator also highlighted that it received more than 24,865 reports on potential unauthorised businesses, urging consumers to remain vigilant and report misleading advertisements and potential scams through official channels.

“The most serious cases are referred to our Enforcement and Markets Oversight Division for investigation,” continued the report. 

“We also capture relevant intelligence, issue alerts on our website to warn consumers about our concerns at the earliest opportunity and make referrals to specialist teams, law enforcement agencies and other regulators where appropriate to facilitate wider action.”