The UK Financial Conduct Authority has proposed banning the use of credit to purchase Crypto Assets.

According to Techub News, as reported by Decrypt, the UK's Financial Conduct Authority (FCA) has released a new discussion paper this week, planning to prohibit cryptocurrency companies from allowing UK customers to purchase crypto assets using credit cards. The proposed rules will also ban any other forms of credit for purchasing cryptocurrencies, including loans and digital money credit lines. The FCA stated: "We are concerned that consumers purchasing crypto assets with credit may end up with unsustainable debt, especially if the value of their crypto assets falls and they rely on that value to repay the debt." Additionally, the FCA mentioned that stablecoins authorized under its regulatory framework may not be subject to the credit ban. Currently, the FCA has publicly requested feedback on the rule-making process. It stated that it will accept public comments on the proposal until June 13.

A recent survey commissioned by the regulatory authority and conducted by YouGov found that 14% of cryptocurrency users in the UK stated they would use credit to purchase digital assets in August 2024. This figure has increased by 133% compared to two years ago.