The British financial supervisory authority examines a ban on using credit cards for the purchase of cryptocurrencies such as Bitcoin as part of a more comprehensive procedure for high-risk individual trading crypto investments.
In a discussion paper published on Friday, the Financial Conduct Authority (FCA) warned that borrowing of investing in cryptoassets could lead to consumers to non -sustainable debts. The proposed restriction would prevent companies from accepting credit cards or credit lines of e-money providers for crypto purchase.
“We are investigating whether it would be appropriate to limit companies to accept loan as a means of consumers, to buy cryptoassets,” said the regulatory authority. “We are considering a number of restrictions, including the restriction of the use of credit cards to buy cryptoassets directly.”
The move aims to limit the risky financial behavior, especially for retail investors, that the FCA believes that they are susceptible to the volatile nature of the cryptoma markets. The paper also suggests blocking the consumer access to crypto loan, which often offer high returns, but fulfill complex risks and limited protective measures.
David Geal, Executive Director for FCA payments and digital finances, told the Financial Times: “Crypto is a potential growth for the UK, but it has to be done correctly. To do this, we have to offer an appropriate level of protection.”
The regulatory authority also weighs whether crypto companies that are based in Great Britain are demanding a step that gives more supervision to a sector that is currently dominated by offshore operators.
The proposals reflect the growing concern about crypto -related financial damage. In 2023, the FCA tightened the rules for crypto marketing and funding and started a campaign warning in front of “Get Rich Quick” programs at the beginning of this year.
While the British government has declared its endeavor to position Great Britain as a global turntable for crypto innovation, the recent FCA measures are signaling a permanent attitude for consumer protection via the unchecked expansion.
The consultation is expected to continue in the summer, whereby the final rules may be introduced in early 2026.