According to a Friday report by the Financial Times, the Financial Conduct Authority (FCA) intends to bar firms from lending money to retail investors for the purpose of buying cryptocurrencies.
Notably, Brits will no longer be able to use credit cards for crypto shopping.
Moreover, retail investors would be prohibited from using popular cryptocurrency lending services, the Financial Times says.
The financial regulator of the world's sixth-largest economy is reportedly concerned about borrowers not being able to repay their loans if cryptocurrency prices end up dropping.
As reported by U.Today, the U.K. introduced draft rules for the cryptocurrency sector. The move has gained praise from some industry participants, including American enterprise blockchain company Ripple.
That said, some crypto critics accuse the FCA of being excessively aggressive toward the industry. David Geale, the executive director of the powerful agency, insists that there should be an "appropriate level" of protection.
Earlier today, the FCA announced that it also seeking feedback on how cryptocurrency trading platforms have to be regulated.
Vladislav Sopov