UK Regulator Proposes Ban on Buying Crypto With Credit Cards

The best financial regulator of Groot -Britain has proposed to prohibit the purchase of cryptocurrency with any form of borrowed funds, including credit cards.

A new discussion paper This week, from the VK’s Financial Conduct Authority, a plan was driven to ban crypto companies to enable British customers to buy crypto activa with a credit card. The proposed rule would also prohibit the purchase of crypto with a different form of credit, including loans and credit lines for digital currency.

The move seems to be largely driven by the concern of the regulator that British adults go into debts to buy crypto, a “risky” practice, given the inherent volatility of digital assets.

“We are concerned that consumers who buy crypto assets with credit cannot get enough debts, especially if the value of their crypto assets falls and they rely on the value of paying back,” the FCA said.

A Yougov survey that was recently demonstrated on behalf of the authority that 14% of British crypto users used credit in August 2024 to buy digital assets. That figure marked an increase of 133% of two years earlier.

However, the proposal would not necessarily have no influence on all crypto assets. The FCA said that Stablecoins would probably be exempt from the credit ban by its regulatory regime.

The FCA has now opened the regulations for public comments. It says it will accept enter About the proposal until 13 June.

Other crypto-related proposals from the FCA include a rule that could make crypto-inserting companies that is liable for financial losses suffered by retail consumers, where the company “has not assessed its technological and operational resilience, including external dependencies, together with a ban on all crypto-credit and bending.

Published by Andrew Hayward