The British Financial Supervisory Authority (FCA) has been busy in recent months. With the crypto market now gaining popularity again and sentiment positive, the UK authority is increasingly issuing warnings about illegal cryptocurrency advertising.
Within three months, the FCA had issued up to 450 warnings to companies carrying out unlawful promotions, the authority said in an official statement.
Renewed attention from Bitcoin ETFs
The entire crypto market is in an uptrend. The prices of many cryptocurrencies are rising significantly. The largest cryptocurrency, Bitcoin (BTC), rose as much as 25 percent last month.
This increase is largely due to the anticipation and arrival of a total of ten Bitcoin spot exchange-traded funds (ETFs) in January. This results in large amounts of institutional capital flowing into the crypto market. Since its introduction, the funds have already received more than 10 billion.
The renewed attention the crypto industry is receiving is also driving the creation and promotion of new cryptocurrencies. The strong capital inflow is interesting and many companies behind small altcoins are eager to benefit from it.
The FCA is showing a tough hand
The FCA’s actions are not without consequences. A total of 450 companies received a warning from the British authorities. In collaboration with tech organizations, the authority was also able to remove 34 apps from the app stores. This affects applications where unauthorized crypto advertising has taken place.
In total, more than 10,000 advertisements were removed or adjusted as a result of the FCA’s measures. It is clear that the British authority is actively combating illegal advertising.
“We will address breaches, using our supervisory tools to identify ongoing breaches and take enforcement action where appropriate,” the FCA said.
The FCA is also investigating a total of 44 crypto companies. The investigations include money laundering and the promotion of unregistered digital assets.