FCA Considers Ban on Buying Crypto with Credit Over Debt Risk Concerns

The UK’s Financial Conduct Authority (FCA) is weighing a potential ban on the use of credit cards and credit lines for purchasing cryptoassets, amid rising concerns about consumer debt risks.

According to a YouGov survey commissioned by the FCA, the number of people using credit to buy cryptocurrencies has more than doubled—rising from 6% in 2022 to 14% in 2024. The regulator fears that individuals may be accumulating unsustainable debt, especially if crypto values fall and borrowers are unable to meet their repayment obligations.

While several payment providers have already imposed restrictions, the FCA is now considering a broader ban across all firms. The proposed restriction would not apply to certain qualifying stablecoins issued by FCA-authorised entities.

The measure is part of a wider discussion paper published this week, following draft legislation by the UK government aimed at bringing crypto firms under stricter regulatory oversight. The proposed changes would give the FCA greater authority in supervising digital asset markets.

David Geale, executive director of payments and digital finance at the FCA, stated: “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.”

He added, “Our aim is to drive sustainable, long-term growth of crypto in the UK. We’re asking whether we have got the balance right.”

Stakeholders can submit feedback on the paper until 13 June, with further consultation expected later this year.