FCA Issues Warning on Unauthorized Meme Coin Project as Illegal Ads Persist

FCA Issues Warning on Unauthorized Meme Coin Project as Illegal Ads Persist

Illegal crypto advertisements remain prevalent in the United Kingdom, even after multiple warnings issued by the Financial Conduct Authority (FCA).

A recent report from the Financial Times highlighted that only 54% of the 1,702 alerts sent by the FCA between October 2023 and October 2024 resulted in the removal of illegal crypto promotions.

Despite the FCA's authority to impose fines and pursue criminal charges against companies that violate advertising regulations, the regulator has not yet taken such actions against those failing to comply. The regulations stipulate that all digital asset promotions must receive approval from the FCA or an FCA-authorized business before publication.

In response to these ongoing issues, Google Ads has updated its advertising guidelines to align with FCA requirements. Starting Jan. 15, 2025, advertisers promoting crypto exchange products and services targeting the U.K. must obtain FCA registration.

The platform will allow advertisements for hardware wallets that do not facilitate the buying, selling, or trading of cryptocurrencies, but it expects all advertisers to comply with local laws.

The FCA has specifically warned U.K. citizens about the potential risks associated with a Solana-based meme coin known as Retardio.

On Dec. 16, the regulator cautioned that the project might be promoting financial services within the U.K. without the necessary FCA authorization. The FCA advised consumers to engage only with FCA-approved companies to ensure their protection.

Individuals dealing with unauthorized projects such as Retardio may find themselves without access to the Financial Ombudsman Service, which resolves financial complaints, or the Financial Services Compensation Scheme, which offers protection if firms go out of business.