The UK’s Financial Conduct Authority is exploring whether to ban Brits from using credit to buy cryptoassets.
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According to a YouGov survey commissioned by the FCA, buying crypto with credit is becoming more popular, growing from six per cent of people who have made purchases in 2022 to 14% in 2024.
The FCA says it is concerned that these people may be taking on unsustainable debt, particularly if the value of their crypto drops and they were relying on it to make repayments.
Several high-profile payment firms have already put in place restrictions but the watchdog is now proposing a blanket ban on firms accepting credit cards and credit lines for buying crypto.
However, this is unlikely to apply to qualifying stablecoins issued by FCA-authorised providers.
The proposal comes in a discussion paper that arrives on the heels of draft legislation last week from the UK government on bringing crypto firms into the regulatory fold which will give the FCA more oversight.
David Geale, executive director, payments and digital finance, FCA, says: “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.”
Interested parties can provide feedback on the discussion paper until 13 June and the FCA will again consult on the final regime later this year.
Read the discussion paper:
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