The proposed ban on using consumer credit to acquire crypto assets is wrong because it confuses legitimate investment activity with gambling, according to a statement put out by The Payments Association in response to proposals put forward by the UK Financial Conduct Authority.
Riccardo Tordera-Ricchi, Director of Policy and Government Relations said: "As the Financial Conduct Authority (FCA) works to regulate cryptoassets The Payments Association advocates strongly for a nuanced and proportionate approach."
"We challenge the proposed ban on credit card purchases for crypto, as it unfairly equates legitimate investment activity with gambling. Many consumers already face difficulties purchasing crypto via debit cards or current accounts due to fraud prevention measures, often leaving credit cards as the only viable option. We believe consumers should be trusted to make informed decisions within their existing credit limits.
"That said, we recognise the need to resolve legitimate concerns around Section 75 of the Consumer Credit Act. Our banking sector members note that existing industry practices already enable controls on credit card use for high-risk investments beyond crypto. From this perspective, limiting credit card use for retail crypto purchases is not an arbitrary restriction but aligns with broader credit risk management principles for high-volatility assets. However, we must ensure that the application of Section 75 does not inadvertently prevent consumers from making informed decisions within their credit limits. A balanced approach is needed—one that upholds consumer protection without restricting access to legitimate financial products.
"Crucially, we make a clear distinction regarding stablecoins. We strongly support exempting qualifying stablecoins from any credit-financed purchase bans. Unlike speculative tokens, stablecoins are typically acquired for their utility and low volatility, not for price appreciation. We aim to ensure regulatory restrictions are narrowly targeted at high-risk, unbacked cryptoassets, without impeding the lawful use of stablecoins. For more detail, please see The Payments Association’s recent report on Stablecoins, available to read here.
"Beyond credit cards, we call for a proportionate disclosure framework for crypto lending, greater clarity on staking activities, and flexible guidance for Decentralised Finance (DeFi). We believe in fostering a regulated environment through education and clear guidelines, rather than broad prohibitions, to safeguard both innovation and consumers, ensuring the UK remains a competitive and secure crypto hub."
The FCA originally set out its approach in the FCA Crypto Roadmap - which envisages its proposed crypto regime go live sometime in 2026.
In mid-June 2025, the regulator committed crypto as part of its response to the UK government call for regulators to find ways to stimulate growth in the economy.
"We are fully committed to supporting economic growth in the UK and a thriving financial services sector. That's why we have made it easier for companies to list, supported greater home ownership, set out a roadmap for crypto regulation, and are reimagining financial advice and guidance to boost investments." it stated.
