Pump.fun Bans UK Traders in Response to FCA Warning

Pump.fun, a popular memecoin launch pad on the Solana blockchain, has banned access for traders in the United Kingdom as of Friday, December 6, 2024. 

This move followed a warning given three days ago by the UK’s Financial Conduct Authority (FCA), which warned that Pump.fun “may be providing or promoting financial services or products without our permission.”

The FCA’s warning stated that Pump.fun is not permitted to operate in the United Kingdom and warned consumers to avoid dealing with the platform to avoid potential fraud.

The regulator stressed that dealing with illegal firms denies consumers access to the Financial Ombudsman Service and protection under the Financial Services Compensation Scheme, raising the risk of financial loss. 

In response to the FCA’s warning, Pump.fun has implemented a geoblock to restrict UK users from accessing its services. A representative from Pump.fun confirmed the blockade but declined to provide further comments.

Pump.fun has become a major platform for releasing memecoins on the Solana blockchain, allowing for the production of currencies like PNUT and WIF. The platform reportedly generated more than $250 million for its UK-based founders.

Traders are expressing frustration
Traders are expressing frustration, Source: X

Traders are expressing frustration over Pump.fun’s decision, calling it a setback for decentralized principles. One user says, “Simple front-end ban for now but it’s only the beginning of nation-states attacking chains. Soon you will all understand the value of true decentralization and why Ethereum makes it a priority.”

While another added that frontends cannot be decentrized on ETH so there will always be such warnings subjected such websites or apps.

Following the UK ban, some traders invented satirical coins. However, none of these assets has acquired much traction.

Also Read: Pump.fun Faces Backlash Over Livestream Misuse, Calls for Shutdown Grow

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