The UK’s Financial Conduct Authority (FCA) is considering a landmark proposal to prohibit the use of credit cards and credit lines for purchasing cryptoassets, as concerns mount over the rise in debt-fueled investments in volatile digital currencies.

According to a new YouGov survey commissioned by the FCA, the number of individuals in the UK using credit to buy crypto has more than doubled—from 6% in 2022 to 14% in 2024. The regulator warns that many of these investors may be incurring unsustainable debt, particularly if the value of their crypto holdings declines and compromises their ability to meet repayment obligations.

In response, the FCA is weighing a blanket ban that would restrict firms from accepting any form of consumer credit for crypto purchases. While some payment providers have already implemented limited restrictions, the proposed ban would apply broadly—though qualifying stablecoins issued by FCA-authorised providers may be exempt.

The proposed measure is part of a wider discussion paper released alongside draft UK government legislation designed to bring crypto firms into the regulatory perimeter. This regulatory shift will expand the FCA’s oversight authority and signal the UK’s intention to build a more secure digital asset environment.

David Geale, Executive Director of Payments and Digital Finance at the FCA, commented:

“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.”

The FCA is calling on industry stakeholders, consumer groups, and financial institutions to submit feedback on the proposal by 13 June 2025, with a second consultation planned later in the year to shape the final framework.

The move underscores the FCA’s broader commitment to regulatory compliance, consumer protection, and risk mitigation within the rapidly evolving digital finance landscape. By targeting credit-based crypto speculation, the regulator aims to curb financial instability and enhance regulatory enforcement across digital asset markets.

As global regulators intensify scrutiny of crypto-related financial practices, this proposed restriction also highlights the growing role of compliance analytics, regulatory intelligence, and financial crime prevention tools in shaping crypto policy. For firms and investors alike, the evolving regulatory framework will demand greater transparency, internal controls, and compliance management systems to remain viable in an increasingly monitored environment.