The FCA, the UK’s Financial Organizational Authority, is preparing to enter a series of restrictions to reduce access to credit INClothes In the encryption market.
Among the most important proposals, the ban on the use of Bightened fundsIt includes Credit cardsTo finance the purchase of cryptocurrencies.
According to the Financial Times report on May 2, FCA intends to strengthen Consumer protection In a sector considered Highly dangerous Be distinguished Decreased.
The initiative is part of a broader plan to organize the national encryption market. It aims to create a Safety and more competitive An environment for investors.
FCA from the UK ready to prohibit use credit To purchase encryption in investments
David Gill, Executive Director of Payments and Digital Finance at FCA, stressed that cryptocurrencies represent an area Possible growth For the United Kingdom.
However, he repeated the need to adopt sufficient measures to ensure a Sufficient level of protection For consumers. “We are open to work,” Jill stated, and he rejected the accusations that FCA is hostile to the coded currency industry and the bear.
The organizational body recently published a discussion paper to collect notes on the future Retelamentazione of the sector.
In it, it is read that FCA evaluates whether it is appropriate to prevent companies from accepting Credit payments To buy Cryptoassets by consumers.
One of the main motives behind the potential ban is the increasing trend for retail investors using credit to finance their investments in encrypted currencies.
According to the research conducted by FCA, though 72 % of users It is still used Entry or criticism is eliminated To buy encryption assets, the percentage of those who use credit significantly increased. This is, from 6 % in 2022 to 14 % in 2024.
This trend worries the regulatory authority. It is afraid to increase Duns are not sustainableEspecially if the value of digital assets will fall and investors are unable to pay the loans obtained.
The proposed ban will also include the use of credit cards, which are particularly risk -fraught to finance volatile investments.
In addition to banning loans to buy cryptocurrencies, FCA intends to present a series of Strong rules To organize the entire ecosystem for encryption.
The goal is to organize not only Trading platformsBut also Brokersthe Lendersthe BorrowersAnd decentralized financial systems (Defi).
Power plans to apply tougher rules for services aimed at retail investors, compared to that customized Professional or advanced investors.
Focus on consumer protection
Among the measures under discussion, there is a commitment to platforms to ensure A fair commercial treatment and Transparency on prices On Implementing negotiations. As well as separation between The trading of ownership The activities and those that were implemented on behalf of customers.
FCA has identified many important areas in the cryptocurrency market. Among them Market manipulationand Conflictand Organizational failureand LiquidityAnd Unreliable trading systems.
To address these issues, the authority intends to prevent platforms from paying Bridges to flow the request. In addition, it plans to prevent users interest Services from receipt Compensations for the losses resulting from third parties.
Moreover, FCA plans to exclude from the new DEFI regulatory systems that do not contain a file Central structure Or a Clearly control the person. Thus recognizing the decentralized nature of these platforms.
An organizational framework to attract companies
According to Gealle, FCA’s ultimate goal is to create a Solid organizational framework. This is one capable of Attracting companies And motivation innovation In the sector, without prejudice to the safety of the investor.
“If we can achieve the correct regulatory system, it is actually attractive to companies.”
FCA reflects a balanced approach: on the one hand, the desire to enhance the development of the UK’s encryption sector.
On the other hand, the need to prevent retail investors from exposing themselves Excessive or Dangerous financial practices. Like borrowing to invest in very volatile assets.
The new rules suggested by FCA an important sign towards Greater From the cryptocurrency market in the United Kingdom.
In a global context, the organizational authorities are trying to find a balance between Technological innovation Consumer protection, the British initiative can represent a model for other countries.
With increasing interest in encrypted currencies from the public and expanding encryption services, the need for a A clear and severe regulatory framework It becomes increasingly urgent.
This step can help by FCA, if implemented, to make the market more transparent, responsibleLong -term sustainable.
