The UK authorities are considering introducing new restrictions on the use of credit to purchase crypto assets. The plan is aimed at protecting consumers' interests.
The UK Financial Conduct Authority (FCA) is contemplating a ban on the purchase of cryptocurrencies using credit cards and e-money. The decision stems from the results of a market study that showed a significant increase in the number of citizens using borrowed funds to invest in digital assets. Their number increased from 6% in 2022 to 14% in 2024.
At the same time, the regulator is planning to enhance the transparency of staking transactions for a better understanding of the risks involved. According to an FCA survey, 27% of UK residents who hold cryptocurrency have already exercised the option.
Hannah Meakin of Norton Rose Fulbright noted the difficulty of finding a balance between encouraging innovation and ensuring proper oversight of the crypto market. However, as noted by Reuters, consumers will retain the ability to use borrowed funds to purchase stablecoins, which are digital currencies with a fixed value pegged to the US dollar, issued by companies under FCA oversight.