I think this is another way of making their citizens lack freedom of doing something.
Yet another sign of socialism in the UK, which is nothing more than a longing for communism, especially in the totalitarian aspect. They hate individual freedom and want an ever larger state that controls every last aspect of life in society.
One responsibility of government is to protect the people in every means that is deem right for the benefit of the people and for greater good of that society. This protection includes lives and properties and acquisition of bitcoin is an asset which also falls under properties. Therefore, if the citizen or people are acquiring bitcoin in a wrong way by only looking at the prospect of profit but not on the risk to the extent of indebtedness if the aim for profit fails, then it behoves on the government whose responsibility extends to asset protection stands in the locus to direct her people. Bitcoin is very expressive and to go for loan of that high amount to buy bitcoin is quite a risk that can turn people into perpetual debtors and that will affect standard of living and the society. So I think it is trite if the UK government is stopping people to borrow money to buy Bitcoin or crypto.
Thinking like this, I am not surprised that part of your nickname is “crypto” and not “bitcoin”, because bitcoin is precisely the opposite of what you say, at least in its original conception. Shitcoins, or “crypto” as you call them, do fit more in that conception of yours that there must be a giant state that puts its hand to control what citizens do.