cryptojournalist
FCA Flags Pump.fun for Unauthorized Activities
The UK’s financial regulator, the FCA, has banned Pump.fun, a memecoin generator, for operating without authorization. The warning, issued on December 3, urged users to avoid the platform and watch out for scams.
The FCA clarified that Pump.fun users won’t benefit from consumer protections like compensation schemes or dispute resolution services available to regulated firms.
Restrictions and User Reactions
Pump.fun’s terms block users from high-risk countries such as Cuba, Iran, and North Korea, but the UK isn’t explicitly mentioned. Despite this, UK users shared tips online for bypassing the ban, including using VPNs.
What Is Pump.fun?
Launched in January 2024, Pump.fun is a Solana-based platform allowing easy and affordable token creation, particularly memecoins. It has attracted attention, generating over $288 million in revenue since its debut.
FCA’s Broader Crypto Crackdown
This isn’t the first crypto ban by the FCA. In October 2023, the agency flagged over 140 unauthorized companies, including Huobi and KuCoin.
As part of its regulatory push, the UK is crafting rules for the crypto sector, including stablecoins, staking, and other activities, to bring more clarity and oversight to the industry.
