The UK’s Financial Conduct Authority (FCA) has set its sights on memecoin generator platform, Pump.fun, issuing a stern warning and blocking it from operating in the country. As of December 3rd, the financial watchdog has alerted the public that Pump.fun “may be offering or advocating financial services or goods without our agreement”.
The notice has gravely stated those conducting business with Pump.fun will find themselves stripped off any potential consumer protections such as the Financial Ombudsman Service or the Financial Services Compensation Scheme. The FCA’s director statement echoes the same caution, encouraging individuals to steer clear from the firm and advising to be on guard against potential scams.
Interestingly, Pump.fun’s terms of service show that while there are several user-prohibited countries including Cuba, Iran, North Korea, Syria, and Russia, the UK is not among them. Users from regions that are deemed high-risk or sanctioned by the UK, US, EU, and UN are, meanwhile, deemed ineligible for its services.
Pump.fun, a decentralized platform that is a part of Solana blockchain, allows users to create and launch their own tokens, or memecoins sans the technical complexity. Its token creation process, both simple and affordable, has made it a popular platform since its launch in January 2024. Yet, following the FCA’s warning, the firm’s UK consumers claimed that the platform is now no longer accessible.
Moving beyond Pump.fun, the FCA has previously taken similar action against crypto firms, adding over 140 digital asset companies to its unauthorized list in October 2023, including well-known exchanges like Huobi and KuCoin. This aligns with the UK’s ongoing development of substantial regulations for digital assets to lay down a clear regulatory pathway for the burgeoning crypto industry, including rules covering stablecoins, staking and other crypto activities.