Pump.fun Blocks UK Users Following FCA Regulatory Warning

• Pump.fun blocks UK users after regulatory warning
• Controversies lead to live streaming feature being shut down
• Former employee arrested for embezzling $1,9 million from platform

Pump.fun, a memecoin launchpad based on the Solana blockchain, has blocked the access of UK users following a warning from the UK financial regulator. The measure was taken in compliance with local laws and regulations, restricting the use of the site to residents of the country.

UK SHUTS DOWN PUMP•FUN!

UK just shut down PumpFun like it's nothing. No more easy gains on that exchange—talk about a curveball.

Was it the risky plays, or did regulators finally pull the plug on all the pumpers?

Either way, traders are hyped up looking for the next spot to… pic.twitter.com/ms4joDPeTW

— Mario Nawfal's Roundtable (@RoundtableSpace) December 6, 2024

The decision comes just days after the UK’s Financial Conduct Authority (FCA) issued a warning about Pump.fun, indicating that the company may be offering or promoting financial services without proper authorization. The FCA advised consumers to avoid transactions with the platform and to be aware of potential scams.

Alon, co-founder of Pump.fun, confirmed that the restriction is permanent and that only UK users are affected. He stressed that the decision was made by the company itself, without direct imposition from the authorities.

Pump.fun has faced several controversies since its launch. In May, a user on the platform set himself on fire during a live stream to promote its memecoin. In response, the company implemented a live streaming feature for creators. However, in October, child sexual abuse material was found on the platform, raising serious concerns about the effectiveness of content moderation.

The live streaming feature was recently disabled following incidents involving threats to animal life, the decapitation of a chicken, and a simulated suicide. The company justified the suspension of the feature as a measure to ensure the safety of users until a more robust moderation infrastructure is implemented.

Despite the controversy, Pump.fun accounted for 62% of transactions on the Solana network in November, according to on-chain data from Dune. However, the platform’s weekly revenue fell 66% after the livestreaming feature was disabled, reflecting the impact of the recent controversies.

The legality of Pump.fun’s operations in the UK has also been called into question. Jarett Dunn, a former employee of the company, was arrested in London on charges of embezzling $1,9 million from the platform. Dunn claimed his action was aimed at exposing the company’s harmful practices. He has been released on bail pending trial.

Legal experts warn that the UK does not tolerate low levels of content moderation, which puts Pump.fun in a delicate legal position. The lack of terms of service, copyright and privacy policies makes matters worse, increasing the company’s vulnerability to regulatory action.

The ban on UK users raises questions about Pump.fun’s legal future, especially considering the company is registered in the country and its employees operate out of London. The move could be seen as an attempt to mitigate legal risks, but it also highlights the challenges crypto platforms face when navigating strict financial regulations.