Key Takeaways
- The FCA is consulting on tighter rules around using borrowed money for crypto and other rules.
- The watchdog is proposing to apply core financial rules — including consumer protection and conduct standards.
- Policy debate remains divided.
Britain is moving closer to a comprehensive regulatory regime for cryptoassets, with the financial watchdog proposing new consumer protection rules that could further restrict the use of credit cards to buy digital assets.
The Financial Conduct Authority (FCA) said this week it had made “significant progress” on its crypto regulatory roadmap and opened a fresh consultation on how traditional financial rules should apply to cryptoasset firms.
The proposals come as policymakers continue to seek a balance between encouraging innovation and protecting consumers in a market the FCA says remains “largely unregulated” and high risk.
What the FCA Is Proposing
The FCA said the latest consultation is intended to prepare firms for future legislation, with a regulatory “gateway” expected to open in September 2026.
“We have made significant progress in delivering our crypto roadmap and are helping firms to meet our standards and get ready for when the gateway opens in September 2026,” the regulator said in a statement.
The watchdog said it aims to support “an open, sustainable and competitive crypto market that people can trust”, while emphasising that risks will remain.
“Regulation can’t – and shouldn’t try – to get rid of all risk,” the FCA said. “We want those interested in investing in crypto to understand that risk.”
Areas Under Consultation
The FCA said it is seeking feedback on a wide range of proposed rules, including:
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Consumer Duty: How the Duty should apply to crypto asset firms.
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Redress and dispute resolution (DISP): Complaints handling and routes to consumer redress.
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Conduct of Business Standards (COBS): Applying fairness and transparency rules to crypto asset activities.
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Credit for crypto purchases: Restrictions on using borrowed money, including credit, to buy crypto assets.
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Training and competence: Standards for staff knowledge and skills.
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Senior Managers and Certification Regime (SM&CR).
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Regulatory reporting (SUP 16): Data reporting requirements to support supervision and risk monitoring.
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Crypto asset safeguarding: Custody and protection of client assets.
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Retail collateral treatment open until March 12, 2026.
Is the U.K. Banning Crypto Credit Cards?
Despite growing scrutiny, the U.K. has not introduced a blanket legal ban on using credit cards to buy crypto.
The FCA has proposed tighter rules on using credit for crypto purchases, citing concerns about consumers borrowing to invest in volatile assets.
Any formal ban would require further regulatory and legislative steps.
In practice, however, access has already been curtailed.
Major banks, including Barclays, NatWest, Santander, and Starling, have blocked or restricted credit card transactions to crypto exchanges as part of their own risk management policies.
A YouGov survey found that 14% of people in the U.K. used borrowed funds to buy crypto in 2022, up 6% from the year previously.
A Divided Approach to Crypto Regulation
Britain’s approach to crypto regulation has exposed divisions among policymakers over how strict the rules should be.
In 2023, MPs on an all-party parliamentary committee urged ministers to treat retail investment in cryptocurrencies as gambling, citing concerns about speculation and consumer harm.
Prime Minister Keir Starmer’s Labor government has faced pressure from within the party to take a tougher line.
Chancellor Rachel Reeves, meanwhile, has argued that the FCA should ease some regulations to support growth.
FCA chief executive Nikhil Rathi has echoed that view.
The FCA said the latest consultation marks “the next milestone” in building a full regulatory framework, while reminding consumers that crypto remains high risk.
David Geale, the FCA’s executive director of payments and digital finance, said clearer rules would help increase confidence in the sector.
“Currently largely unregulated, we want to create a crypto regime that gives firms the clarity they need to safely innovate, while delivering appropriate levels of market integrity and consumer protection,” Geale said.
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Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
