The United Kingdom’s Financial Conduct Authority (FCA) has issued a warning about the memecoin generator platform Pump.fun, stating that the platform is not authorized to operate in the country.
The warning, issued on Dec. 3, notes that the platform “may be providing or promoting financial services or products without our permission” in the UK.
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.”
Pump.fun’s terms of service stipulate that several countries are prohibited to users, but the UK is not among them. The platform notes that users in jurisdictions deemed as high-risk or sanctioned by the UK, United States, European Union and United Nations are not eligible to access its services.
The list of prohibited countries includes Cuba, Iran, North Korea, Syria and Russia. Cointelegraph reached out to Pump.fun for comment but did not receive an immediate response.
Related: What is Pump.fun? A guide to Solana’s memecoin generator
Pump.fun is a decentralized platform on the Solana blockchain that enables users to create and launch their own tokens, primarily memecoins, without requiring technical expertise. Launched in January 2024, it has gained popularity for its simple and low-cost token creation process.
According to data available on Dune Analytics, the platform has generated over $288.4 million in revenue since its inception.
Pump. fun’s total revenue as of Dec. 6. Source: Dune Analytics
Related: Pump.fun weekly revenue drops 66% after livestream controversy
Users on Pump.fun’s support channel on Telegram claim the platform is now no longer available in the UK. Despite the ban, some participants did not seem to be intimidated, with a few users even sharing tips to bypass the regulator’s guardrails, including the use of virtual private networks (VPNs) to access the platform.
The FCA has previously issued similar warnings against crypto firms. In October 2023, the financial watchdog added over 140 digital asset companies to its non-authorized list, including major exchanges like Huobi and KuCoin, citing a lack of regulatory approval to operate in the local market.
The UK is developing a regulatory framework for digital assets in an effort to establish clear guidelines for the industry. The framework is expected to introduce regulations covering stablecoins, staking and other crypto activities.
Related: UK cryptocurrency ownership rises to 12% as FCA prepares new regulations