The post UK’s FCA Plans to Ban Credit-Fueled Crypto Investments appeared on BitcoinEthereumNews.com.

FCA proposes banning retail investors from using borrowed funds to purchase Bitcoin and other crypto assets due to rising consumer debt risks. New UK rules aim to regulate crypto exchanges and promote legal innovation while easing requirements for foreign stablecoin issuers. The UK Financial Services Authority (FCA) is back in the news, this time because of its latest proposal that is quite brow-raising: banning retail investors from using borrowed funds to buy Bitcoin and other crypto assets, according to Financial times. Yes, that’s right—if approved, you will no longer be able to use credit cards or bank loans to buy crypto. The reason? The FCA sees more and more people taking on debt to follow crypto investment trends that they may not fully understand. Just imagine if you borrow tens of millions to buy crypto, then the price drops overnight. Instead of making a profit, you might end up having to work extra hard to cover the mounting bills. According to data reported by the FCA, the number of investors buying crypto using loans rose from 6% in 2022 to 14% last year. This is no small matter. The risk of mounting debt due to market fluctuations is a major concern—especially for retail investors who usually don’t have in-depth investment experience. FCA Moves Reflect Broader UK Crypto Strategy Abroad On the other hand, this move is not the only British maneuver in the crypto world. CNF reported that in April, UK Finance Minister Rachel Reeves admitted to having direct discussions with US Treasury Secretary Scott Bessent in Washington. In an official statement, the Treasury Department said that the new rules would bring crypto exchanges, agents, and dealers under regulatory oversight. The goals are twofold: eradicating violations of the law and at the same time encouraging legal innovation. It is a…

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Filed under: News - @ May 3, 2025 8:25 am