UK’s FCA to ban retail investors from borrowing money via credit cards to buy crypto.
New rules target trading platforms, lenders, and DeFi to curb market abuse and protect consumers.
Retail access to high-risk crypto services will be restricted, and firms must register and operate under UK oversight.
The UK’s Financial Conduct Authority (FCA) has proposed to stop consumers from borrowing money, including using credit cards, to invest in cryptocurrencies. The measure is part of a wider set of rules to bring most of the crypto market under the regulator’s oversight for the first time.
The FCA cited growing concerns about unsustainable debt levels and consumer vulnerability as key reasons for proposing the crypto borrowing ban. These specific worries become especially sharp when crypto asset values fall unexpectedly. A recent YouGov survey backs this up revealing that in the 2022-’23 period, the proportion of UK consumers using borrowed funds to buy crypto rose from 6% to 14%.
Platform Requirements Under New Rules
The new proposals aim to regulate trading platforms, intermediaries, lenders, and decentralized finance (DeFi) systems if there is a �…
The post UK’s FCA Plans to Block Borrowed Funds for Crypto Purchases appeared first on Coin Edition.
