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The United Kingdom Financial Behavior Authority (FCA) is planning new rules that Prevent regular investors from using money to buy cryptocurrencies.
David GealeExecutive Director of Payments and Digital Finance of the FCA, Reportedly. That, although cryptography could offer new opportunities for the United Kingdom, the industry must have adequate protections.
He added that the FCA is not against Crypto, but he sees it as a high -risk area where consumers need more safeguards.
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May 2, the FCA He asked for public comments On cryptographic regulation. In his consultation, the regulator said it is Considering a rule to prevent companies from allowing customers to buy credit cryptography.
The FCA aims to apply stricter standards to services aimed at everyday investors compared to those who serve professional customers. According to Geale, the objective is to create a safe and competitive environment that also attracts the companies responsible for the United Kingdom.
An important reason to prohibit credit -based cryptographic purchases is the risk that people take debts cannot pay if the value of their cryptography falls. The 2024 FCA investigation found that 72% of cryptography users use their own money to invest. However, credit purchases have increased from 6% by 2022 to 14% in 2024.
Other possible rules include prevent regular investors from using loan services and encryption loans. It is possible that exchanges are required to treat all operations equally, clearly inform prices and commercial execution, and separate their own negotiation from customer negotiation. Paying intermediaries for sending orders could be prohibited. The rethinking services could have to cover the losses caused by third parties.
Recently, the European Union confirmed plans to introduce strict rules against money laundering. What do the rules imply? Read the full story.
Having completed a master’s degree in economics, politics and cultures of the Oriental Asia region, Aaron has written scientific documents that analyze the differences between Western and collective capitalism forms in the era after World War II.
With about a decade of experience in the Fintech industry, Aaron understands all the most important problems and struggles facing cryptography enthusiasts. He is a passionate analyst who is concerned about data -based content and based on facts, as well as the one who speaks for both web3 natives and for the newcomers of the industry.
Aaron is the reference person for everything and anything related to digital currencies. With a great passion for blockchain & web3 education, Aaron strives to transform the space as we know it and make it more accessible to complete beginners.
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