Why the FCA Wants to Step In
The UK’s Financial Conduct Authority (FCA) is pushing for a ban on purchasing cryptocurrencies using credit cards and personal loans. The proposed regulation comes amid rising concerns over consumer debt, speculative trading, and the risks of financial instability. According to the FCA, buying crypto with borrowed money exposes retail investors to “unsustainable losses” in highly volatile markets.
The regulator’s move follows a global trend of tightening crypto rules, aligning the UK with similar restrictions in countries like Canada and Singapore.
What the Proposed Ban Would Cover
The proposal would restrict consumers from using:
- Credit cards to purchase cryptocurrencies on exchanges
- Unsecured personal loans for crypto-related transactions
- Access to lending/borrowing platforms such as DeFi protocols and CeFi services
These measures aim to mitigate excessive risk-taking, prevent money laundering, and strengthen investor protection frameworks.
What Else Is Changing
The proposed ban is part of a broader regulatory overhaul in the UK crypto sector. Other changes include:
- Tighter marketing rules for crypto assets
- Enhanced KYC/AML obligations for exchanges and custodians
- Greater scrutiny of crypto derivatives, yield farming, and high-risk token offerings
These adjustments mirror international developments like the EU’s Markets in Crypto Assets (MiCA) regulation.
Public Feedback and Industry Reaction
The FCA has opened a public consultation period, inviting feedback from crypto firms, consumer groups, and the wider public.
Industry reactions have been mixed:
- Crypto exchanges warn of “overregulation” driving innovation offshore
- Consumer advocacy groups praise the ban for promoting responsible investing
- Some analysts suggest clearer guidance on enforcement and exemptions is still needed
Binance, Coinbase, and Revolut have all issued preliminary statements, urging balanced policymaking that safeguards users without stifling technological advancement.
Coin Prices and Market Overview
Here’s a snapshot of how key cryptocurrencies are performing as of today:
| Coin | Symbol | Price (USD) | 24h Change | Market Cap (USD) |
|---|---|---|---|---|
| Bitcoin | BTC | $63,400 | +2.1% | $1.24T |
| Ethereum | ETH | $3,050 | +1.8% | $367B |
| XRP | XRP | $0.53 | -0.4% | $28B |
| Solana | SOL | $146 | +3.3% | $66B |
| USDC | USDC | $1.00 | 0.0% | $32B |
| Dogecoin | DOGE | $0.15 | +0.9% | $21B |
| Cardano | ADA | $0.44 | -0.6% | $15 |