Great Britain Regulators Seek to Prevent Crypto Customers from Borrowing to Purchase Bitcoin (BTC): Report – The Daily Hodl
The finance ministry of Great Britain intends to limit credit card usage for crypto purchases.
Per a recent report by Reuters, the Financial Conduct Authority (FCA) seeks to eliminate “bad actors” while also supporting legitimate initiatives.
“We are exploring various restrictions, including banning credit cards for direct cryptoasset purchases, as well as using credit lines offered by e-money firms for this purpose.”
However, consumers will still be permitted to buy stablecoins with credit cards.
Nonetheless, the FCA warns that crypto investors should be ready to lose everything when investing in digital assets.
Earlier this year, the FCA implemented a ban on crypto advertisements, resulting in a 50% reduction in such promotions.
The FCA reports making “good progress” with tech companies in regulating prohibited advertisements but remains “concerned about the prevalence of online fraud and scams.”
“Numerous social media platforms have now prohibited paid advertisements for UK financial services from firms not authorized by the FCA, and we continue to take action against those that breach our regulations.”
While seeking input on crypto regulation in February, David Geale, executive director of payments and digital finance at the FCA, remarked:
“Crypto is an expanding industry that is primarily unregulated. We aim to establish a regulatory framework that provides firms with the clarity needed for safe innovation, while ensuring adequate market integrity and consumer protection.
Our goal is to foster sustainable, long-term growth of crypto in the UK. We’re questioning whether we’ve struck the right balance.”
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