In a significant development, Pump. fun, a prominent memecoin launch pad on the Solana blockchain, has restricted access for traders in the United Kingdom starting from Friday, December 6, 2024. This action came in the wake of a caution issued by the UK’s Financial Conduct Authority (FCA) three days prior. The FCA alerted that Pump. fun “might be offering or promoting financial services or products without authorization.”
The FCA’s warning made it clear that Pump. fun is not authorized to function in the UK and urged consumers to refrain from engaging with the platform to prevent potential fraud. The regulator emphasized that dealing with illegal firms deprives consumers of access to the Financial Ombudsman Service and protection under the Financial Services Compensation Scheme, thereby increasing the likelihood of financial losses.
In reaction to the FCA’s warning, Pump. fun has enforced a geoblock to bar UK users from availing its services. A spokesperson for Pump. fun verified the block but declined to offer additional remarks.
Pump. fun has emerged as a key platform for launching memecoins on the Solana blockchain, facilitating the creation of currencies such as PNUT and WIF. Reportedly, the platform has generated over $250 million for its founders based in the UK.
Traders have expressed dissatisfaction with Pump. fun’s decision, deeming it a setback for decentralized principles. One trader commented, “It’s just a simple front-end ban for now, but it’s only the start of nation-states targeting chains. Soon, everyone will realize the significance of true decentralization and why Ethereum prioritizes it.” Another trader added that frontends cannot be decentralized on ETH, so such warnings will always be applicable to such websites or apps.
After the UK ban, some traders came up with satirical coins, although none of these assets have gained significant popularity.
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