$ETH The British regulator will restrict loans for cryptocurrency investments

The UK's Financial Conduct Authority plans to ban retail investors from using borrowed funds, including credit cards, to purchase cryptocurrencies.

The UK's financial regulator, the Financial Conduct Authority (FCA), plans to prevent retail investors from borrowing money to finance their crypto investments.

According to a report by the Financial Times on May 2, the ban on borrowing to finance cryptocurrency purchases is one of the upcoming FCA regulations on cryptocurrencies. David Geale, FCA's executive director of payments and digital finance, told the FT that "crypto is an area of potential growth for the UK, but it has to be done right." He added:

"For this, we need to provide an adequate level of protection."

Geale denied claims that the FCA is hostile to the crypto industry. Instead, he explained that he believes the industry offers high-risk investments with less consumer protection. "We are open for business," he said.

The interview comes after the FCA sought opinions on regulating the cryptocurrency market. In an accompanying document, the regulator noted that it is "exploring whether it would be appropriate to restrict companies from accepting credit as a means for consumers to purchase cryptoassets."