Britain's financial regulator has proposed banning retail investors from using borrowed money, including credit cards, to buy cryptocurrencies, citing rising concerns over consumer debt and financial risk, reported Xinhua.
The Financial Conduct Authority (FCA) unveiled the proposal in a new discussion paper that lays out plans to tighten oversight of the crypto sector. The rules would cover trading platforms, intermediaries, lending and staking services, and decentralized finance (DeFi) systems, the regulator said on Friday.
FCA said it is particularly concerned about the growing number of retail investors using credit to fund crypto purchases. A YouGov survey cited by the FCA found the share of such investors more than doubled from 6 percent in 2022 to 14 percent in 2023.
In addition to curbing borrowing, the FCA is seeking feedback on stronger consumer protections and greater transparency in crypto trading. The proposals follow a broader government effort to regulate digital assets.
Public comments are open until June 13. The FCA plans to publish a formal consultation later this year.
Source: www.dailyfinland.fi
