UK regulator moves to restrict borrowing for crypto investments

Quick Summary:

That is what we are trying to achieve.”Related: UK’s finance watchdog defends ‘too tough’ crypto stanceThe FCA lending banThe regulator explained that its upcoming ban to restrict lending to fund consumers’ crypto purchases is motivated by a concern over “unsustainable debt, particularly if the value of their crypto asset drops and they were relying on its value to repay.” The ban would also include credit card purchases.

Related: FCA releases discussion paper on crypto market transparency, abuseFCA’s upcoming rulesThe FCA aims to regulate the domestic cryptocurrency market, ruling over trading platforms, intermediaries, crypto lenders and borrowers, as well as decentralized finance (DeFi) systems.

In an attached document, the regulator noted that it is “exploring whether it would be appropriate to restrict firms from accepting credit as a means for consumers to buy cryptoassets.”FCA crypto regulation discussion paper.

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Article Details

Author / Journalist: Cointelegraph by Adrian Zmudzinski

Category: Crypto

Markets: United StatesUnited Kingdom

Topics: Trading Retail Regulator Plans Credit Financial Market Investors Crypto Purchases Fund

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2025-05-02 @ 14:11:03 (22 hours ago)

News Timezone: GMT -5:00

News Source URL: cointelegraph.com

Language: English

Article Length: 553 words

Reading Time: 4 minutes read

Sentences: 24 lines

Sentence Length: 24 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © Coin Telegraph

News ID: 28321216

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About Coin Telegraph

Main Topics: Crypto

Official Website: cointelegraph.com

Update Frequency: 20 posts per day

Year Established: 2013

Headquarters: United States

News Last Updated: 8 hours ago

Coverage Areas: United States

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Publication Timezone: GMT -5:00

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News Language: English

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Publisher ID: #11

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