UK FCA to Ban Credit Card Crypto Purchases in 2025

In a bold move that could reshape retail access to crypto assets, the UK’s Financial Conduct Authority (FCA) is reportedly preparing to ban the purchase of Bitcoin and other cryptocurrencies using credit cards. The policy, expected to be introduced later this year, comes amid growing concern over consumer protection, debt accumulation, and market speculation.

If enacted, the ban would align crypto buying with gambling restrictions, where the use of credit is similarly prohibited to discourage reckless spending and financial overextension.

Protecting Consumers or Curtailing Freedom?

The FCA’s stated aim is to safeguard consumers from taking on unsustainable debt while chasing volatile assets. With crypto markets known for their price swings, Bitcoin alone has fluctuated between £30,000 and £75,000 in the past year. Regulators worry that credit-based investing could lead to defaults and long-term financial harm.

A spokesperson for the FCA stated, “We continue to assess the risks of high-risk investment products. Buying cryptocurrencies with borrowed money poses unacceptable risks to vulnerable consumers.”

How the Ban Would Work

Under the proposed framework:

• UK credit card issuers would be prohibited from processing transactions for digital asset purchases.
• Debit card purchases, bank transfers, and regulated payment gateways would remain unaffected.
• Exchanges would be required to comply with card-blocking mandates or face penalties.

This restriction would apply to all retail users but would not currently impact institutional investors or corporate accounts using business credit lines.

Industry Reacts

Crypto advocates have criticised the move as heavy-handed, arguing that it restricts financial autonomy and places an unnecessary barrier between consumers and digital asset ownership.

“This is another example of the FCA overreaching,” said Natalie Briggs, COO of fintech firm Altbridge. “Credit cards are a financial tool, not a moral hazard. Education, not restriction, should be the priority.”

Some fear the decision could push UK users toward offshore exchanges, where regulation is looser and credit card use remains possible.

Meanwhile, consumer rights groups have largely welcomed the proposal, with Citizens Advice UK calling it a “much-needed step toward responsible crypto regulation”.

Context: UK’s Growing Crypto Clampdown

The announcement follows the FCA’s tightening grip on the crypto industry. In the past year, the agency has taken several actions:

• Enforced strict advertising rules for digital assets.
• Exchanges are required to register for AML compliance.
• The government has banned certain types of crypto derivatives for retail investors.

This latest move appears to be part of a broader risk-mitigation strategy, as the UK positions itself as both a crypto innovation hub and a jurisdiction that takes consumer protection seriously.

Stay on top of any cryptocurrency news by following us on X @ouinex