Crypto Scams: UK Financial Watchdog Intensifies Fight Against Crypto Scams

Highlights

The UK's Financial Conduct Authority plans to enhance its capacity to detect and prosecute market abuse in the crypto sector from 2024 to 2025.
FCA aims to introduce a market abuse regime tailored for crypto assets and related services to improve market integrity.
The regulator will use advanced analytics, including network analysis, to improve surveillance and intervention mechanisms in the crypto market.

The United Kingdom’s (UK) Financial Conduct Authority (FCA) has set out its main focus areas for 2024 to 2025. The regulator seeks to develop its capacity to identify and prosecute market abuse cases. Moreover, it aims to create a market abuse regime that corresponds to crypto assets and related services. This statement marks considerable progress in market integrity and investor protection from unfounded fraud.

FCA intends to strengthen its surveillance and intervention mechanisms. These improvements will target the detection and eradication of market abuses within the crypto sector. The body aims to exploit advanced analytics such as network analysis and cross-asset class visualizations. These instruments are among the overall arsenal of the FCA to enforce market integrity. In doing so, the FCA aims to ensure that the crypto market participants have a safer investment environment.

Improvement of Crypto Assets Regulatory Frameworks

The FCA has gone further than just supervising market abuse. It further entails creating a market abuse regime specifically designed for crypto-assets, as well as the PISCES module. The regulator highlights the need to promote innovation and reduce risks. Consequently, it aims to create this regulatory model to reduce industry costs and facilitate sustainable development within the industry. This method is in line with the FCA’s commitment to striking a balance between regulatory oversight and the dynamic character of the crypto industry.

In addition, the FCA has initiated measures to provide more stringent supervision over the financial promotions of crypto firms. The regulator has advanced its technology capabilities in detecting promotional materials that are likely to mislead, deceive, or harm the investor. In October 2023, the FCA enacted new rules on crypto-related marketing. It is aimed at ensuring that crypto firms adhere to these regulations to safeguard investors from false advertisements.

UK FCA Bolsters Consumer Protection in Crypto

Within the context of the extensive strategy, the FCA also engages in consumer awareness campaigns. These campaigns aim to inform investors about the possible scams and risks involved in the investment of cryptos. The proactive stance of the authority in issuing warnings and taking action against companies that violate advertising rules reflects its commitment to consumer protection. For that year only, the FCA delivered 450 warnings of illegal crypto advertising and pledged their continued work in 2024.

The FCA’s guidance for UK-based crypto firms on complying with crypto asset promotion rules is a testament to its dedication to providing clear regulatory guidelines. Despite these efforts, the authority notes that many crypto firms still breach advertising regulations. The FCA’s ongoing efforts to combat illegal crypto marketing promotions highlight its resolve to ensure a transparent and secure crypto market for investors.

Recommended
Price Analysis

Best Crypto Presales To Invest In September 2025 – Top Upcoming Presale Tokens

Best Crypto AI Trading Bots In 2025

Top Meme Coins To Buy In September 2025

Maxwell Mutuma

Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.

Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.