The Financial Conduct Authority (FCA), the Financial Regulatory Authority of the United Kingdom, is preparing to introduce a series of restrictive measures to limit access to credit for Invelvet on the cryptography market.
Among the most important proposals, the prohibition to use Borrowed fundsincluding credit cardsTo finance the purchase of cryptocurrencies stands out.
According to the Times financial report on May 2, The FCA intends to strengthen Consumer protection in a sector considered as high -risk and characterized by low transparency.
The initiative is part of a broader plan to regulate the national cryptography market. He aims to create a safer and more competitive environment for investors.
The FCA of the United Kingdom is ready to ban the use of credit Buy crypto in investments
David Geale, Executive Director of Digital Payments and Finance at the FCA, stressed that cryptocurrencies represent an area of potential growth for the United Kingdom.
However, he reiterated the need to adopt adequate measures to ensure a Sufficient level of protection For consumers. “We are open to business,” said Geale, rejecting the accusations that the FCA is hostile to the Taurus and cryptocurrency bear industry.
The regulatory organization recently published a discussion document to collect comments on the future regolamentazione in the sector.
It is read that the FCA estimates if it is advisable to prohibit companies from accepting credit payments For the purchase of cryptocurrency by consumers.
One of the main motivations behind the possible ban is the growing tendency of retail investors using credit to finance their investments in cryptocurrencies.
According to research carried out by the FCA, although 72% of users Always use disposable income or species To buy cryptographic assets, the percentage of those who use credit has increased considerably. That is to say 6% in 2022 has 14% in 2024.
This trend worries the regulatory authority. This fears an increase in unbearable debtEspecially if the value of digital assets had to fall and investors were unable to reimburse the loans contracted.
The proposed ban would also include the use of credit cards, considered a particularly risky tool to finance volatile investments.
In addition to the ban on loans for the purchase of cryptocurrencies, the FCA intends to introduce a series of stricter rules To regulate the entire ecosystem of cryptography.
The objective is to regulate not only the trading platformsbut also the intermediariesTHE lendersTHE borrowersand decentralized financing systems (Challenge).
The authority plans to apply more strict rules for services intended for retail investors, compared to those intended for professional or sophisticated investors.
Focus on consumer protection
Among the measures under discussion, it is compulsory for platforms to guarantee fair trade treatment And Transparency on prices And on the Execution of negotiations. As well as the separation between owner trading activities and those carried out on behalf of customers.
The FCA has identified several critical areas on the cryptocurrency market. Among these are market manipulation,, conflicts of interest,, regulatory failures,, unlimitedAnd Unreliable trading systems.
To solve these problems, the authority intends to prohibit platforms from paying intermediaries for the order flow. In addition, it plans to prevent users from staking Reception services reimbursements for losses caused by third parties.
In addition, the FCA plans to exclude new challenge systems in regulatory scheme which have no centralized structure or a Clear control person. Thus recognizing the decentralized nature of these platforms.
A regulatory framework to attract companies
According to Geale, the ultimate objective of the FCA is to create a Solid regulatory framework. That is to say a capable of Attract companies and stimulating innovation In the sector, without compromising investor security.
“If we can reach the right regulatory regime, it actually becomes attractive to businesses.”
The position of the FCA reflects a balanced approach: on the one hand, the desire to promote the development of the cryptography sector in the United Kingdom.
On the other hand, the need to prevent retail investors from exposing themselves to excessive risks Or Dangerous financial practices. Like the loan to invest in very volatile active ingredients.
The new rules proposed by the FCA mark an important step towards larger regulations of the cryptocurrency market in the United Kingdom.
In a global context where regulatory authorities are trying to find a balance between technological innovation And consumer protection, the British initiative could represent a model for other countries.
With the increase in interest in public cryptocurrencies and the expansion of cryptography services, the need for a Clear and rigorous regulatory framework becomes more and more urgent.
The FCA decision, if implemented, could help make the market more transparent, responsibleand long -term sustainable.
