The UK’s Financial Conduct Authority (FCA) is considering a ban on the use of credit cards to purchase cryptocurrencies, including bitcoin, as part of a broader effort to tighten regulations around high-risk retail crypto investments.
In a discussion paper released on Friday, the FCA warned that using borrowed money to invest in volatile cryptoassets could lead consumers into unsustainable debt. The proposed restrictions would prohibit firms from accepting payments via credit cards or credit lines issued by electronic money providers for crypto-related purchases.
“We are exploring whether it would be appropriate to restrict firms from accepting credit as a means for consumers to buy cryptoassets,” the regulator said in its paper. “We are considering a range of restrictions, including banning the use of credit cards to directly purchase crypto.”
The initiative is aimed at curbing risky financial behaviour among retail investors, who are often drawn into the highly volatile cryptocurrency market without fully understanding the risks involved. Alongside the proposed credit restrictions, the FCA is also looking at preventing access to crypto lending platforms, which frequently advertise high yields but offer limited investor protections.
David Geale, the FCA’s executive director of payments and digital finance, told the Financial Times that although crypto remains an area of potential economic growth, consumer safety must come first. “Crypto is an area of potential growth for the UK but it has to be done right. To do that we have to provide an appropriate level of protection,” he said.
The regulator is also considering a rule requiring crypto firms that serve UK customers to have a physical presence in the country. Such a move would extend oversight to companies currently operating from overseas jurisdictions.
The FCA’s proposals follow a series of recent steps to tighten control over the sector. In 2023, the regulator implemented stricter rules on crypto advertising and marketing practices. Earlier this year, it launched a public awareness campaign warning consumers about the dangers of “get rich quick” schemes associated with digital assets.
While the UK government has expressed ambitions to make Britain a global centre for crypto innovation, the FCA’s latest proposals highlight a cautious and consumer-focused approach. The consultation process will run into the summer, with final decisions expected to be implemented in early 2026.
