FCA does not want Britons to buy a credit encryption

The UK’s Financial Conduct Authority (FCA) explores restrictions on UK residents who buy credit coded currencies, and is now seeking to obtain general comments on this matter and other proposed organizational measures.

“We are thinking about a set of restrictions, including limited to use credit cards to buy Cryptoassets directly, and the use of credit line provided by an electronic money company to do so,” indicated by the discussion paper that regulates the activities of Cryptoassets.

However, the British Agency will exempt the Stablecoin purchases approved by these credit restrictions.

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Britain moves towards encryption regulations

The proposal came just a few days after the UK government announced its plans to regulate the local cryptocurrency industry. According to a recent survey on Yougov, the number of Britons buying cryptocurrencies is more than 6 percent in 2022 to 14 percent last year. David Geale, Executive Director of Payments and Digital Finance at FCA

“Crypto is a growing industry. Currently is largely unorganized, we want to create an encryption system that gives companies the clarity they need to innovate safely, while providing appropriate levels of market safety and consumer protection.”

“Our goal is to push sustainable growth in the United Kingdom.”

Read more: The UK targets encryption operations with new rules such as trilogy to 12 %

Currently, the FCA requires all the interdiating companies that are operated locally to register with it. However, its supervision is limited to anti -money laundering rules, the financial upgrade system, and consumer protection legislation.

Despite mandatory registration requirements, FCA 86 percent of requests from encryption companies in the 12 months ended in April 2024. In the continuous fiscal year, the rejection rate decreased to 75 percent.

Control of encryption platforms

The British organization also raised concerns about the ill -treatment of the market, disclosure, nails, nursery, and caution.

It suggests that all encryption trading platforms should be treated at equality, and their trading activities are separated from retail customer activities, and that they are transparent on pricing and execution of trade. Moreover, the discussion paper suggested prohibiting trading platforms to pay intermediaries to flow requests.

FCA will also require encryption companies that provide services in the United Kingdom to work through an accredited local legal entity. In addition, consumers with encrypted cryptocurrencies must be compensated with losses due to third -party actions.

Although the organizer does not intend to cover the decentralized financing operations that are operated only by code lines, any such platform with a “clear controlling person” will fall under the scope of the UK encryption regulations.