- Pump.Fun restricts UK access after FCA flags unregistered operations, citing compliance with local laws.
- FCA warns users of risks with unregistered crypto platforms; Pump.Fun updates terms to block UK users.
- Pump.Fun faces scrutiny over alleged misuse; UK ban follows regulatory concerns and community backlash.
Decentralized platform Pump.Fun has blocked users in the United Kingdom from accessing the platform. This follows a warning on December 3 by the UK’s Financial Conduct Authority (FCA).
The FCA flagged the platform for promoting or offering financial services that are not authorized. On December 6, Pump.Fun updated its terms of service, citing compliance with UK regulations. Visitors from the UK now encounter a notice stating the platform is unavailable to them.
FCA Highlights Risks for Unregistered Platforms
Every cryptocurrency company must register with the FCA prior to serving customers in the UK. Since the country enacted the regulations in 2020, only 47 of the 347 applications have received approval. Individuals on unregistered platforms lack protection from the Financial Ombudsman Service and the Financial Services Compensation Scheme.
The platform has joined a growing list of platforms that have adjusted operations to comply with FCA regulations. The agency has previously issued similar warnings to several digital asset companies, including major exchanges like Huobi and KuCoin.
Controversies Surrounding Pump.Fun
Launched in January 2024, Pump.Fun enables users to create and trade tokens, primarily memecoins, with no coding skills required. It processes 62% of decentralized exchange transactions on the Solana blockchain and has generated over $288 million in revenue.
Despite its popularity, the platform has faced scrutiny over alleged misuse. Earlier this year, Pump.Fun introduced live-streaming features to enhance community engagement. However, the feature led to allegations of scams and unregulated promotions. Following community backlash, Pump.Fun disabled the feature.
Users React to Restrictions
Some users on Pump.Fun’s Telegram channel have shared methods to bypass the UK ban, including using virtual private networks (VPNs). Meanwhile, the UK continues developing its regulatory framework for digital assets.
The regulations will cover stablecoins, staking, and other crypto activities. Pump.Fun’s restriction of UK users reflects the growing regulatory challenges faced by crypto platforms.
