No, imgur isn't banned, they were threatened with a fine, and it wasn't because of the online safety act, it was because they were tagging user data with suspected age range, and selling browsing habits of children. The ICO said that they had to come up with a plan to exclude the child data from sale or they could be liable for a fine. Rather than implement a simple filter on the database, they implemented a complicated geofencing filter because they took offence at being regulated at all.
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It wasn't all old data that they deleted, but it was a lot. Why trust a corporation with your memes? You're on Lemmy for a reason. You know how this ends.