The UK's Financial Conduct Authority (FCA) is considering a ban on the use of credit for purchasing cryptocurrency, aiming to prevent consumers from accruing unsustainable debt due to the volatile nature of digital assets. A recent discussion paper from the FCA highlighted concerns over the increasing percentage of UK crypto users relying on credit for acquisitions, which rose by 133% over two years. The proposed regulation would prohibit any crypto purchases using borrowed funds, including credit cards or loans. The public can submit comments on this proposal until June 13. The FCA's proposed regulatory framework also addresses the responsibility of crypto staking firms for potential financial losses among retail consumers if their operational resilience is inadequately assessed. This move is part of a broader initiative to enhance confidence and promote growth in the cryptocurrency sector in the UK, with stablecoins likely to be exempt from the credit ban.

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