UK Preparation for Consumer Prohibitions from Purchase of Crypto with borrowed funds Cryptocurrency

The financial regulator in the UK is prepared to ban retail investors from the use of borrowed funds such as credit card balance to invest in cryptocuran as it seeks to process over the fastest growing market of digital assets.

Virtual currencies such as Bitcoin After selecting Donald Trump, they put pressure on Financial organ for implementation (FCA) To take a firm line while it also sets the foundation that the industry flourishes in the UK.

According to the recent yougov, the share of people in the UK using borrowed funds to buy more than doubled from 6% in 2022. To 14% last year.

Lending to finance investments, when property values ​​can change dramastically, consumers risked that they lost their entire investment and potentially other property, such as their home. These characteristics carefully reminded of gambling, he found the Treasury Committee.

The proposed ban is expected to face the resistance of some Fintech firms. Meanwhile, ministers presented draft laws that would expand the existing financial regulations of companies involved in CRIPTO, harmonization of Great Britain with the US, not in the EU.

Chancellor, Rachel Reeves said after a recent visit to Washington she had It discussed cryptic regulation with the American Treasury Secretary, Scott Bessent, And that the two countries planned to discuss the subject in June.

It is known that the immaculate pro-crypto and, together with the truth, is against the proposal for the digital currency of the Central Bank. Releasing the concerns that private companies such as Meta, Google and Apple can control digital currencies in the future, said that the Senate Finance Committee in January: “I see no reason to have a digital currency of the Central Bank.”

Eurozone finance ministers said they were concerned last month that the American view could affect the monetary sovereignty of the eurozone and financial stability.

In the United Kingdom, the Ramelje government has succumbed to the workpiece to take a firm line. 2023 The MPs at the All Parliamentary Parliamentary Committee invited Ministers to treat retail investments in cryptocurrency such as Bitcoin as a form of gambling.

As part of her growth strategy, Reeves called Relief of regulations In some areas, the approach of the Executive Director of the FCA, Nikhil Rathi, which proposed to be rules in square miles can simplify the innovation.

David Geale, Executive Director of Payment and Digital Finance at FCA, said that clear crypto regulations would increase confidence in the sector, supporting growth.

“The CRIPTO is a larger industry. We are currently unregulated, we want to create a crypto regime that it is clear that it is necessary to secure the appropriate levels of integrity and consumer protection,” he said.

Stating the concerns of market manipulation, conflict of transparency and unreliable trade systems. We have a right to have a right whether we have the right to have the right to have a right to have that we have the right to do we have Balance. “

Legislation will provide guards to monitor all crypto and digital financial affairs, including crypto-trading platforms, intermediaries, crypto products and borrowers.