FCA Considers Ban on Buying Crypto with Credit
The UK’s Financial Conduct Authority (FCA) is exploring a ban on the use of credit to purchase cryptoassets, citing rising concerns over consumer debt levels.
A recent YouGov survey, commissioned by the regulator, found that the number of people buying crypto with credit has more than doubled—from 6% in 2022 to 14% in 2024. The FCA fears this trend could lead to unsustainable borrowing, especially if crypto values fall and buyers are relying on gains to repay debt.
While some payment providers have already restricted credit-based crypto purchases, the FCA is proposing a blanket ban on the use of credit cards and credit lines for crypto buys. Notably, this would exclude qualifying stablecoins issued by FCA-authorised firms.
The proposed ban is part of a discussion paper following recent draft legislation from the UK government that aims to formally bring crypto firms under FCA oversight.
David Geale, executive director of payments and digital finance at the FCA, said:
“Crypto is a growing industry. Currently largely unregulated, we want to create a crypto regime that gives firms the clarity they need to safely innovate, while delivering appropriate levels of market integrity and consumer protection.
Our aim is to drive sustainable, long-term growth of crypto in the UK. We’re asking whether we have got the balance right.”
The FCA is inviting feedback on the discussion paper until 13 June, with further consultation on the final regime expected later this year.
