The UK’s Financial Conduct Authority (FCA) is stuck in a battle it doesn’t seem to be winning. Between October 2023 and October 2024, the watchdog flagged 1,702 illegal crypto ads, apps, and websites. Yet only 54% of these vanished from the internet. That leaves nearly half of these banned promotions still live and luring unsuspecting victims. Despite new powers to fine or prosecute rule-breakers, the FCA hasn’t pulled the trigger on a single company. The rules are straightforward: crypto ads must be approved by the FCA or an authorized firm before they go online. If not, companies face promises of “robust” action. So far, those promises are looking pretty hollow. The FCA’s focus turns to influencers, not companies Rather than targeting big crypto firms, the FCA has zeroed in on social media influencers—dubbed “finfluencers.” These individuals hype up crypto schemes to millions of followers, often without disclosing the risks. In one criminal case, nine people were charged for promoting an unauthorized investment tied to high-risk derivatives. The cast reportedly included stars from Love Island and The Only Way Is Essex . That’s not all. In October, the FCA announced it was interviewing another 20 finfluencers under caution for pushing illegal financial products. These interrogations follow new rules rolled out in March, tightening oversight of social media promotions. The regulator managed to file criminal charges against influencers just two months after introducing the rules. But while influencers feel the heat, crypto companies are skating by untouched. Prosecuting them, it seems, is more complicated. Platforms let banned ads stay up with no penalties Here’s the thing: the FCA can’t legally force tech platforms to take down unapproved crypto ads. It’s all about voluntary cooperation. Companies like Google, Meta, and Microsoft’s Bing have agreed to block unapproved financial ads. But these are handshakes, not legally binding commitments. And half the time, the ads just don’t disappear. This voluntary system leaves the FCA negotiating in good faith with tech giants while crypto scammers run amok. Crypto companies and exchanges know the FCA’s hands are tied. The regulator might talk tough, but its enforcement powers are limited. This is especially true when it comes to online platforms hosting fraudulent ads. The financial sector, meanwhile, is growing frustrated. And social media platforms are seen as complicit, allowing scams to thrive on their watch. The UK and crypto Bitcoin’s UK debut in 2013 was modest. Back then, only a few startups and enthusiasts saw its potential. By 2014, the UK Treasury was starting to take notice, publishing reports about “digital currencies” and hinting at the need for regulations. But it wasn’t until 2017 that things started heating up. The FCA began warning the public about the risks of investing in crypto. By 2018, the regulator had rolled out anti-money laundering rules for crypto exchanges. This was the first real attempt to tighten the screws. The next year, the government launched consultations, asking industry leaders how to tame the beast while keeping the innovation alive. The FCA then banned crypto derivatives for retail investors in 2020. The risks, they said, outweighed the rewards. Things got more serious in 2021. They demanded that all crypto companies register with them to keep operating legally. But compliance was no cakewalk, and many companies couldn’t make the cut. Meanwhile, the UK government started toying with the idea of a central bank digital currency (CBDC). Fast forward to 2022, and Bitcoin and Ethereum were tanking. Then came the big blow—the FTX collapse. It has been a long and painful road to redeem itself, but thanks to the launch of ETFs and President Donald Trump, the crypto market has never been better. Bitcoin literally broke seven all-time highs last year, letting off at around $108,400. As of press time, it was worth $93,772, in a market correction expected to last until the Inauguration on January 20th. Land a High-Paying Web3 Job in 90 Days: The Ultimate Roadmap
