UK regulator moves to restrict borrowing for crypto investments
The UK’s Financial Conduct Authority plans to ban retail investors from using borrowed funds, including credit cards, to purchase crypto.
The United Kingdom’s financial regulator, the Financial Conduct Authority (FCA), plans to stop retail investors from borrowing money to fund their crypto investments.
According to a May 2 Financial Times report, the ban on borrowing to fund crypto purchases is one of the upcoming crypto rules by the FCA. David Geale, FCA 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:
Geale denied claims that the FCA is hostile to the crypto industry. Instead, he explained that he views the industry as offering high-risk investments with less consumer protection. “We are open for business,“ he said.