Overview

• The UK's Financial Conduct Authority (FCA) has proposed banning the use of credit cards and other borrowed funds for purchasing cryptoassets to mitigate financial risks for consumers.
• The FCA is also considering restrictions on crypto lending and borrowing, including mandatory credit checks and consumer knowledge assessments.
• Draft legislation from the Treasury aims to bring crypto exchanges, intermediaries, and decentralized finance (DeFi) under the existing financial regulatory framework.
• A public consultation on the FCA's proposed rules, including transparency requirements for staking and other consumer protections, is open until June 13, 2025.
• Surveys commissioned by the FCA highlight the urgency of regulation, showing a rise in credit-funded crypto purchases and significant consumer engagement in staking.