The UK's Financial Conduct Authority (FCA) proposed this week banning the purchase of cryptocurrency with borrowed funds. This includes credit cards, loans, and digital currency credit lines.
The proposal stems from concerns that UK adults are incurring debt to buy crypto, a practice the FCA deems risky due to crypto's volatility. A YouGov survey commissioned by the FCA revealed that 14% of UK crypto users used credit to buy digital assets in August 2024, a 133% increase from two years prior.
Stablecoins authorized by the FCA may be exempt from the ban. The FCA is accepting public comments on the rule until June 13.