The UK’s Financial Conduct Authority (FCA) has stepped up its crackdown on crypto firms. Since new rules on financial advertising came into force last October, it has issued over 1,000 warnings and removed 48 apps from UK app stores, Coindesk reported, citing the regulator. This enforcement underscores the regulator’s commitment to protecting consumers in the rapidly evolving crypto market.
The FCA’s aggressive stance towards crypto firms
The FCA is taking a proactive approach to regulating the crypto industry. Since the financial promotion rules for crypto companies came into force on October 8 last year, the FCA has issued more than 1,000 warnings to firms that have not complied. Lucy Castledine, the regulator’s director of consumer investment, shared these findings in a recent interview with the media publication.
The FCA’s actions have had a significant impact. The regulator’s efforts resulted in the removal of 48 apps from UK app stores. Castledine stressed the FCA’s ongoing commitment to monitoring and stopping illegal activity. “We will continue to take action where we see firms acting illegally,” she said, underlining the importance of these measures in protecting UK consumers from unregistered and potentially harmful crypto promotions.
The FCA is not alone in this endeavor. The regulator works with third parties, including social media companies, to identify and remove illegal websites and content promoting unregistered crypto businesses. This multi-pronged approach aims to curb the spread of misleading information and ensure that only compliant companies can reach potential investors.
New guidelines for registered companies
On Wednesday, the FCA published new guidelines for registered firms highlighting both good and bad practice in the industry. The rules require firms to take reasonable steps to verify whether a consumer is a restricted, high net worth or certified sophisticated investor before making financial promotions.
The report acknowledged that while most firms allowed customers to self-categorise correctly, there were also cases of poor practice. Some firms guided consumers through the self-categorisation process and told them what information they needed to enter to proceed. The FCA described these practices as worrying and reiterated the need for stricter compliance with the rules.
