Feed: Slashdot
Feed Link: https://slashdot.org/
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Title: UK Preparing To Ban Consumers From Buying Crypto With Borrowed Funds

Link: https://news.slashdot.org/story/25/05/02/1832...

The UK financial regulator is preparing to ban retail investors from using
borrowed funds such as credit card balances to invest in cryptocurrency as it
seeks to overhaul supervision of the fast-growing digital assets market. The
Guardian: The soaring values of virtual currencies such as bitcoin after
Donald Trump's election have put pressure on the Financial Conduct Authority
(FCA) to take a tougher line while it also lays the groundwork for the
industry to flourish in the UK. According to a recent YouGov survey, the
proportion of people in the UK using borrowed funds to make crypto purchases
more than doubled from 6% in 2022 to 14% last year. Borrowing to fund
investments, when asset values could change dramatically, meant consumers
risked losing their entire investment and potentially other assets, such as
their home. These characteristics closely resembled gambling, the Treasury
committee found.

Read more of this story at Slashdot.

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