The United Kingdom’s Financial Conduct Authority (FCA) is not having the expected success in its efforts to ban cryptocurrency advertising. Half of the crypto ads aired across the country are still accessible, Financial Times reported.
Control and Implementation Issues
According to data based on free information requests made by the FCA, only 54% of 1,702 warnings resulted in removal of illegal ads, apps and websites. This shows that the authority is having difficulties in implementing the advertising ban.
Retired FCA chairman Charles Randell told the Financial Times that penalties should be introduced against companies that ignore the ban. “Unless there is a real and present threat of legal action, we should not expect change,” Randell said.
Collaboration with Technology Platforms
One of the challenges regulators face is that they cannot ask tech and social media platforms to ban unapproved content. “When platforms are sufficiently motivated to block these ads, they can do so,” Randell said, emphasizing that regulators should motivate the platforms (perhaps with heavy fines).
While the FCA said “good progress” had been made in regulating technology companies, it said it was concerned about the prevalence of online scams and scams.
“Many social media sites have banned advertising of financial services in exchange for payments they receive from firms that are not authorized by the FCA, and we continue our fight against those who break the rules” -FCA representative.
It is stated that for the ban to be effective, platforms and authorized crypto asset exchanges must make clear the threat of legal action against non-compliant advertising. In this way, it is aimed to comply with regulations and reduce illegal advertising.
Despite the progress the FCA has made with existing regulations, it is thought that stricter measures need to be taken to fully control crypto advertising. In this process, it is recommended that regulators cooperate more closely with technology companies and apply legal pressure if necessary.
The fact that FCA’s efforts to ban crypto advertising have not yet yielded the desired results reveals the lack of supervision in the sector and the difficulties in implementing regulations. This situation remains a serious concern for the protection of users and the stability of financial markets.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
