The United Kingdom’s Financial Conduct Authority (FCA) issued a warning on December 3 against Solana-based meme coin launchpad Pump.fun for operating without proper authorization.
Pump.fun access has now been restricted to users in the United Kingdom following the warning.
FCA Flags Pump.fun: Are UK Users at Risk of Losing Funds?
In a statement published on December 3, the FCA said,
“This firm may be providing or promoting financial services or products without our permission. You should avoid dealing with this firm and beware of scams.”
BREAKING: UK RESTRICTS @pumpdotfun FROM RESIDENTS
— BSCN Headlines (@BSCNheadlines) December 6, 2024
The regulator expressed concerns that the platform “may be targeting people in the UK” despite not being authorized to conduct business with customers in the country.
The platform, which allows users to create and trade Solana tokens without coding experience, confirmed that UK-based users can no longer access its services.
Users attempting to access Pump.fun from the UK are warned on the website about restricted access.
“Restricted jurisdiction. Our systems have identified that you are in the United Kingdom,” the statement read. “In accordance with the laws and regulations of the United Kingdom, this site is currently unavailable to users in the United Kingdom.”
“If you have coins deposited in the private wallet, please follow this link that will allow you to withdraw your coins,” the warning continued.
As of the time of writing, Pump.fun has not issued a statement about the FCA’s warning on its official X account or Telegram channel.
Under UK regulations, companies offering cryptocurrency-related services must register with the FCA if subject to the country’s money laundering laws.
According to the FCA, customers using unauthorized firms like Pump.fun risk losing their funds with little to no recourse.
The regulator emphasized that users would lack financial protections and might find it difficult to recover their money if problems arise.
Is Pump.fun’s Success Sustainable Amid Mounting Controversies?
Pump.fun has faced numerous controversies since its launch in January.
In May, the platform introduced a livestreaming feature for meme coin creators after an incident where a user set themselves on fire while promoting a token.
The livestreaming feature, however, sparked further outrage when it was used for disturbing stunts, including threats to animal life and a staged suicide.
In October, the platform faced severe backlash after child sexual abuse material was discovered on its site, exposing flaws in its moderation system.
Following these events, Pump.fun removed its live-streaming feature entirely.
Despite these controversies, Pump.fun accounted for 62% of all Solana transactions in November, according to on-chain data from Dune Analytics.
However, the platform’s ethical and legal issues have raised questions about its long-term viability.
Pump.fun is registered in the UK under Baton Corporation Ltd., with its employees reportedly working in London during a high-profile internal scandal.
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