Most crypto ads break FCA rules

The Financial Conduct Authority’s rules on financial promotions are widely ignored in crypto-related social media posts, a compliance review shows.

Adclear examined 57 of the most-viewed Instagram and TikTok posts tagged with #crypto over 13 months. The analysis revealed that 89% did not meet FCA standards for financial promotions.

Risk warnings missing in more than half of posts

The most common violation was the lack of risk warnings. Over half of the posts made no mention of the financial risks involved in trading cryptocurrency. The problem was more pronounced on Instagram, where 69% omitted any risk disclosure. On TikTok, 43% lacked such warnings.

Other issues included failing to disclose that content was an advertisement, sponsorship, or paid partnership. That omission occurred in 54% of the posts. Another 40% presented an unbalanced view of crypto investing risks and rewards, while 30% did not clarify that past performance does not guarantee future results.

Seven percent of the posts were deemed unfair, unclear, or misleading under FCA standards. Eleven percent promised guaranteed returns, despite cryptoassets being classified as high-risk products.

New rules take shape as crypto marketing expands

The findings come as the FCA prepares a broader regulatory framework for crypto firms in the UK. Tighter rules on financial resilience and market integrity will take effect in 2027. The regulator has already indicated it will scrutinize financial promotions more closely, especially those targeting retail audiences on social media.

Consumer research in the report found that 29% of people buying cryptoassets use social media to research purchases. Younger investors often rely on online influencers for trading advice.

Adclear’s automated compliance platform compared the posts against FCA expectations. The company noted that crypto-related influencer content was more compliant than posts promoting buy-now-pay-later products but less so than broader financial influencer content. No detailed comparative percentages were released.

Joe Jordan, a spokesperson for Adclear, said the research showed basic disclosure failures rather than complex legal problems. “Many posts can improve compliance with simple fixes, such as including risk warnings or clear ad disclosures,” he stated. “This shows that compliance doesn’t have to be complicated.”

Regulators have previously raised concerns about influencer marketing of financial products. The FCA and other UK authorities have increased oversight of promotions across investments, credit, and digital assets. They argue that consumers can be misled when content blurs the line between personal opinion and paid advertising.

For crypto firms, the issue will likely grow more urgent as the UK brings the sector under stricter oversight. Businesses using social media to reach customers may face pressure to monitor both paid partnerships and unaffiliated endorsements.

The sample size was small, but the results indicate that even popular crypto posts often skip required warnings and disclosures. The gap between influencer content and regulatory expectations may shrink as new rules take effect, though compliance remains a widespread issue for now.

As finance leaders seek better tools to manage compliance risks, platforms like commercial intelligence systems are gaining attention for their ability to streamline oversight.