UK’s main financial regulator proposes ban on the purchase of crypto with debt

Regulators in the UK plan to ban retail investors from the purchase of cryptian property with Debt, referring to financial risk and instability.

The United Kingdom introduces the cleaning of the rules for the CRIPTO, including the ban on the purchase of this risky property with Debt. On Friday, 2. May, the UK Financial Management Artist announced a new document Proposing new rules for crypto property.

The ban would include purchases made by credit cards, e-money and any other form of debt. According to the regulator, the goal is to protect consumers in case these volatile assets fall into value. In addition, retail investors will be prohibited to deal with certain loan platforms, which considers a high risk.

At the same time, the regulator indicated new rules for the CRIPTO platforms. For one CRIPTO, companies will be needed to establish a legal entity in the UK and fall under the supervision of the United Kingdom. Specifically, regulations would be mandals of transparent prices and segregation of property platform from those users.

Moreover, the proposed regulation would ban payment for the order of the order, referring to the potential for abuse. Practice refers to intermediaries by directing orders of their clients to selected market producers, potentially creating conflicts of interest.

UK is “open to work”: FCA director

David Geale, CEO of FCA Payments and Digital Finance, listed That these regulations aim to provide protection of investors. However, he dismissed the claim that the country was brought to the crypto industry.

“Cripto is a field of potential growth for the UK, but it must be done correctly. To do this that we need to provide an appropriate level of protection”, “David Geale, FCA.

He compared CRIPTO with other high risky funds and noted that, in many cases, cripto regulations offer even less protection. However, he stressed that the country is welcome to crypto trading and innovation.

“In some way, I would compare it with any other high risk investments, which if anything often has less protection … We are open to work”