The UK's Financial Conduct Authority (FCA) is considering banning the use of credit to purchase cryptocurrencies. This proposal aims to prevent individuals from accumulating unsustainable debt while investing in the volatile crypto market. The FCA highlighted that many consumers are turning to credit cards and loans to buy digital assets, raising concerns about financial stability. A recent survey showed that 14% of UK crypto users relied on credit to make such purchases, a 133% increase from two years ago. The proposed regulation, still under public consultation until June 13, 2025, may exempt certain stablecoins that comply with FCA regulations from this ban. Other proposed rules include making crypto staking firms liable for losses incurred by consumers due to inadequate assessments of their operational risks.

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