UK FCA Proposes Credit-Financed Crypto Purchases Ban

The UK Financial Conduct Authority (FCA) is proposing a ban on purchasing cryptocurrencies with borrowed funds, aiming to curb debt concerns within the sector. The move follows a recent surge in credit usage for crypto purchases, with 14% of UK crypto buyers relying on credit in 2022 – up from 6%. The FCA’s proposed ban could impact both stablecoins and DeFi markets. Potential exemptions exist, and the decision will affect how individuals access and invest in cryptocurrencies.