The post UK FCA to Ban Bitcoin & Crypto Buying With Credit Cards appeared on BitcoinEthereumNews.com.

Buying crypto involves a certain amount of risk. So, investment experts recommend caution and diversification. But some individuals continue to pour their entire life’s savings into these digital assets like Bitcoin and other crypto assets. What’s more, some even go as far as buying them on credit. Now, the UK FCA has some bad news for such crypto enthusiasts. Proposed Ban on Using Credit Cards to Buy Crypto On Friday, May 2, the United Kingdom’s Financial Conduct Authority (UK FCA) recommended a radical new measure: a ban on using credit cards to purchase cryptocurrency assets. The growing tendency of utilizing borrowed money to buy cryptocurrency has prompted the proposed prohibition. A recent survey commissioned by the United Kingdom’s YouGov found that this trend is not negligible anymore. In fact, customers who paid for crypto assets with a credit card or existing credit facility more than doubled from 6% in August 2022 to 14% in August 2024. However, regulators continue to warn that crypto assets like Bitcoin are inherently volatile, and using credit to buy them puts the entire system at risk. FCA says that it aims to foster innovation in crypto within a secure framework with the new regulations. Critics, however, call attention to possible regulatory overreach and doubt the regulator’s capacity to enforce these intricate guidelines. Released for public comments on Friday, the new proposal seeks to reduce consumer debt risks connected with erratic digital assets. Industry players have till June 13, 2025, to comment on the ideas. UK FCA Proposes Regulatory Overhaul​ of Crypto The ban on the use of credit cards to buy crypto is part of the FCA’s broader regulatory framework to bring crypto asset activities under comprehensive oversight.​ The FCA’s discussion paper, released on Friday, proposes sweeping new regulations for almost the entire crypto chain,…

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Filed under: News - @ May 3, 2025 2:31 am