UK believes that buying bitcoin on credit cards is prohibited to prevent debt spiral
Financial regulators in the UK are exploring a ban on using credit cards to buy cryptocurrencies like Bitcoin, part of a broader crackdown on high-risk retail crypto investments.
The Financial Conduct Authority (FCA) warned in a discussion paper published Friday that lending to invest in cryptocurrencies could lead consumers to unsustainable debt. The proposed restrictions will prevent companies from accepting credit cards or credit limits from network providers for cryptocurrency purchases.
“We are exploring whether it is appropriate to restrict companies from accepting credit as a means of purchasing crypto goods,” the regulator said. “We are considering a range of restrictions, including restricting the use of credit cards to purchase crypto goods directly.”
The move is designed to limit risk-taking financial behavior, especially among retail investors, and the FCA believes it may be vulnerable to turbulence in the crypto market. The paper also proposes to block consumers from accessing crypto lenders, which often offer high returns but have complex risks and limited protections.
David Geale, executive director of payments and digital finance at FCA, told the Financial Times: “Crypto is an area of potential growth in the UK, but it must be done right. To do this, we must provide the right level of protection.”
Regulators are also weighing the need to provide UK customers with cryptocurrency companies, a move that will bring more oversight to the industry currently dominated by offshore operators.
These proposals reflect an increasing concern about the financial harm associated with encryption. In 2023, the FCA tightened rules on cryptocurrency marketing and promotions, and earlier this year it launched campaign warnings for “rich” programs related to digital assets.
Although the UK government has expressed its ambition to position the UK as a global hub for crypto innovation, the latest FCA measures show a firm stance on consumer protection for unrestricted expansion.
The consultation is expected to continue into the summer, and the final rule may be introduced in early 2026.
