Catenaa, Sunday, May 11, 2025-Britain’s top financial regulator has proposed banning the purchase of cryptocurrencies using credit cards or any form of borrowed funds, citing concerns over rising consumer debt tied to digital asset speculation.
In a discussion paper published this week, the Financial Conduct Authority (FCA) outlined plans to prohibit crypto firms from allowing British consumers to use credit cards, loans or digital credit lines to buy crypto assets.
The proposal comes amid mounting anxiety over the financial risks of borrowing to invest in volatile markets.
A YouGov survey commissioned by the agency found that 14% of UK crypto investors used credit to purchase digital assets as of August 2024—a 133% increase compared to two years earlier.
The FCA noted the proposed rule may not apply to all forms of digital assets.
Stablecoins authorized under the regulator’s oversight regime would likely be exempt from the ban.
The public has until June 13 to submit comments on the proposed restrictions.
The credit ban is one of several new measures floated by the FCA as part of its broader effort to regulate the crypto market. Other proposals include holding staking firms liable for operational failures and prohibiting crypto lending and borrowing platforms altogether.
The UK continues tightening oversight following a wave of bankruptcies that rocked the global crypto industry in 2023.
