UK Regulator Proposes Ban on Buying Crypto With Credit Cards

Britain’s high monetary regulator has proposed banning the acquisition of cryptocurrency with any type of borrowed funds, together with bank cards. 

A brand new dialogue paper from the UK’s Monetary Conduct Authority floated a plan this week to outlaw crypto companies from permitting British clients to purchase crypto property with a bank card. The proposed rule would additionally ban the acquisition of crypto with another type of credit score, together with loans and digital foreign money credit score strains.

The transfer seems largely pushed by the regulator’s concern that UK adults are going into debt to purchase crypto, a “dangerous” observe, given the inherent volatility of digital property.



“We’re involved that customers shopping for crypto property with credit score could tackle unsustainable debt, notably if the worth of their crypto asset drops and so they had been counting on its worth to repay,” the FCA mentioned. 

A YouGov survey not too long ago commissioned by the Authority discovered that 14% of UK crypto customers reported utilizing credit score to purchase digital property in August 2024. That determine marked a 133% uptick from two years prior. 

The proposal, if handed, wouldn’t essentially influence all crypto property, nevertheless. The FCA mentioned that stablecoins approved by its regulatory regime would possible be exempt from the credit score ban.

The FCA has now opened the rulemaking to public remark. It says it is going to settle for enter on the proposal till June 13.

Different crypto-related proposals put forth by the FCA embrace a rule that might make crypto staking companies accountable for monetary losses suffered by retail shoppers the place the agency has “inadequately assessed its technological and operational resilience, together with third-party dependencies,” together with a ban on all crypto lending and borrowing platforms.

Edited by Andrew Hayward