The United Kingdom’s Financial Conduct Authority issued a warning against Pump.fun, a meme coin launchpad based in Solana on December 3, for operating without the proper authorization.
Following the warning, Pump.fun is now only available to users in United Kingdom.
FCA flags Pump.fun – Are UK users at risk of losing funds?
In a press release published December 3, the FCA stated:
This firm could be promoting or providing financial products or services without our consent. Avoid dealing with this company and be aware of scams.
The regulator expressed concern that the platform may “target people in the UK”, despite the fact that it is not authorized to do business in the country.
The platform, which allows UK users to create Solana tokens and trade them without any coding knowledge, has confirmed that UK users will no longer be able to access its services.
On the website, users from the UK who attempt to access Pump.fun are warned about limited access.
“Restricted jurisdiction. “Our systems have determined that you are located in the United Kingdom,” read the statement. According to the laws and regulations in the United Kingdom, the site is not available at this time for users from the United Kingdom.
The warning went on to say, “If you’ve deposited coins in your private wallet, you can withdraw them by clicking this link.”
Pump.fun, as of the writing of this article, has not released a statement regarding the FCA’s caution on its official X channel or Telegram account.
Under UK regulations, companies offering cryptocurrency-related services must register with the FCA if subject to the country’s money laundering laws.
Customers who use Pump.fun, a company that is not licensed by the FCA and does not have a license to operate, risk losing their money with little recourse.
The regulator stressed that users may not have financial protection and could find it hard to recover money in the event of a problem.
Can Pump.fun Survive Despite Growing Controversy?
Since its launch in January, Pump.fun is the subject of many controversies.
After an incident in which a user lit himself on fire to promote a token, the platform added a feature that allows creators of meme coins to livestream their work.
Livestreaming was also used to stage a suicide and threaten animals.
The platform was subjected to a severe backlash in October after a video containing child sexual abuse appeared on its website, revealing flaws with its moderation system.
Pump.fun has removed the live-streaming feature entirely.
Dune Analytics’ on-chain data shows that despite these controversies in November, 62% of Solana transactions were made by Pump.fun.
The platform’s long-term viability has been questioned due to its ethical and legal issues.
Pump.fun was registered in the UK as Baton Corporation Ltd. Its employees were reportedly in London at the time of a high profile internal scandal.
