UK FCA Wan Ban People Buy Crypto With Borrowed Money, Dey Talk Say Dem Wan Make Rules Tighter For Small-Small Investors
UK Financial Conduct Authority (FCA) go arrange big big change for inside crypto market. Dem say dem wan ban pipo from using borrow money like credit cards, loans, and credit lines to buy digital money like bitcoin. Dis one come because plenty UK pipo wey no be big big investor don dey use credit buy crypto. E climb from 6% for 2022 to 14% for 2024, based on wetin FCA see. Dem wan protect pipo better and stop dem from doing risky things wey be like gambling. Di proposed ban go reach pass normal credit people, e go include fintech and digital-asset-specific lenders too. But dem fit make exception for stablecoins wey FCA-regulated companies issue. FCA still dey tink about make rules tighter for crypto lending, borrowing, and staking, maybe only allow big big investors do dis high-risk business. Dis proposals join government plan to make things clear, teach investors, and regulate di UK digital asset sector well. About 7 million adults for UK (around 12% of di pipo) don hold digital assets now. Pipo fit give dia opinion on di proposals until June 13, 2025. Wetin dem wan do for regulation fit really affect how normal pipo access crypto, how many pipo dey for di market, and e fit change trading style, especially for leveraged trading and high-risk products.
Bearish
FCA propose say dem no want make people use borrow money for retail crypto purchase. Dis tin go seriously limit trading wey get leverage and reduce how easy retail people go fit get access to digital things like bitcoin. Before before, wen dem dey limit leverage and how retail people dey participate, especially during times wey rules dey tight, e dey cause low buy-side pressure and reduce total trading volume. As dem target credit-based purchases and risky products like crypto lending and staking, di new rules aim to bring down speculative activities and reduce market instability risks. Although dis steps fit encourage market to grow better for long run, di sharp-sharp and short-term effect on di market go likely be negative, because limiting access fit lead to decrease in demand and trading activities among retail investors – wey be major force wey drive di recent crypto rallies. Even though institutional investors largely free, losing retail momentum fit weigh on price action, especially for bitcoin and related products.