If you have used your credit card to buy cryptography in the United Kingdom, those days may be numbered. The Financial Behavior Authority (FCA) has proposed an official rule that would prevent retail investors from buying cryptocurrencies using Borredwed funds. That includes credit cards, personal loans and even loans of specific cryptographic lenders. However, some cryptography users are concerned that the prohibition of the United Kingdom discourages innovation and limits access to the market.
The measure is part of a broader effort to protect consumers from accumulating debt chasing volatile digital assets. And with more people jumping to the cryptography using money, it does not have real, the United Kingdom’s main financial control body is playing the alarm.
Why FCA chickens intervene
The FCA’s concern is simple: more people are borrowing money to buy digital assets, and that is a financial disaster that expects it to happen. According to recent research, the number of people who use debt to enter cryptography has more than duplicated in the last two years, from 6% in 2022 to 14% in 2024.
The United Kingdom is prepared to prohibit consumers from buying cryptocurrencies with funds provided, according to recent FCA ads. This movement raises questions about the future of cryptographic investment practices. What impact will this market regulation have?
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For a market as volatile as cryptography, that is a risky trend. Prices balance wildly, and if things go south, these investors could end not only with losses but with Zebrts cannot afford to pay. That, argues the FCA, is a recipe for long -term financial damage.
What would cover the prohibition
This is not just a credit card. The proposal would prohibit all kinds of loans to buy cryptography. That includes personal loans and finance of specific cryptographic lenders. The only possible exception would be Stablecoins issued by companies regulated by the FCA. If those coins are backed and transparent, the FCA could allow them to slide under different rules.
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The point is to stop things before consumers are trapped in a spiral of debt linked to speculative investments.
What’s the most changing
This is not a unique rule. The FCA is implementing a broader package destined to adjust how Crypto is bought, sells and promises in the United Kingdom.
Some of the key measures in consideration include:
- Forcing cryptographic platforms to register with the FCA
- The ban on trade platforms in their books while serving customers
- Requiring more prices and trade execution
- Prohibit the payment of orders, where the platforms pay runners for customer operations
- Responsible for strike suppliers if things go wrong with the validators of third parties
The regulator also wants to keep retail users outside the loans and loans of high -risk cryptocurrencies completely.
Public comments and industry reaction
The FCA celebrates a public consultation until June 13, 2025. Some in the cryptographic world are concerned that this can drown innovation. Others say that the rules are very late, especially after the chaos of recent years with bankruptcy platforms, lost funds and meme-cain mania.
The FCA says that it is not trying to kill cryptography. You are just trying to bring some Guardraails to a market that has operated without many for too long.
Thinking about the future
If this prohibition of loan passes, could remodel how retail users interact with cryptography in the United Kingdom. No more buy bitcoin on a credit card and wait for moons next week. The FCA wants investors to play with the money they have, no money they owe, and that could be the beginning of an era much more cautious for the cryptography of the United Kingdom.
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Key control
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The United Kingdom’s Financial Behavior Authority (FCA) proposes to prohibit cryptographic purchases made with BORREDWED funds, including credit cards and personal loans.
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The measure aims to protect consumers to incur debt through speculative cryptography investments, especially since the purchase of debt fed cryptography has doubled since 2022.
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The prohibition of proposition covers all sources of loans, including loans of cryptographic banks and lenders, with a possible exception for the stable regulated by FCA.
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This proposal is part of a broader repression that includes more strict platform rules, greater transparency and restrictions on high -risk loan services.
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The FCA is accepting public comments until June 13, 2025, with the intention of creating a safer and more regulated cryptographic environment for the investors of the United Kingdom.
The post UK prepared to prohibit the purchase of cryptography with credit cards and loans first appeared in 99Bitcoins.