FCA issues warning, bans Pump.fun in the UK

As a seasoned crypto investor with a decade of experience under my belt, I’ve learned that caution is always the better part of valor. The FCA’s warning about Pump.fun serves as a stark reminder of the unpredictable and often murky nature of the crypto world.

The UK’s Financial Conduct Authority (FCA) has sounded a cautionary note regarding the meme coin generator platform Pump.fun, advising that it does not have approval to function within the British territory.

On December 3rd, a notice was given stating that the platform might be offering or endorsing financial services or goods in the UK without proper authorization from us.

The notice adds that customers dealing with Pump.fun won’t have access to consumer protections, such as the Financial Ombudsman Service or the Financial Services Compensation Scheme. The FCA said:

“You should avoid dealing with this firm and beware of scams.”

As reported by Dune Analytics, the platform has accumulated approximately $288.4 million in earnings since it first began operations.

Users on Telegram’s Pump.fun support group assert that the platform is currently inaccessible within the UK. However, despite this restriction, some users appear unfazed, with a handful even offering strategies to circumvent regulatory barriers, such as employing virtual private networks (VPNs) to gain access to the platform.

Previously, the Financial Conduct Authority (FCA) has issued similar cautions concerning crypto businesses. In October 2023, this financial regulator expanded its list of unauthorized digital asset companies to more than 140, which includes prominent exchanges like Huobi and KuCoin. This action was taken due to the absence of necessary regulatory approval for them to operate within the local market.

2024-12-06 21:23

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