🔔The United Kingdom 🇬🇧 intends to impose new restrictions on the use of credit cards for purchasing Bitcoin and cryptocurrencies, in a move that reflects growing concerns over the worsening of consumer debt associated with investing in high-risk digital assets.
✨This proposal was included in a discussion paper 📝 issued by the Financial Conduct Authority (FCA) titled DP25/1, warning that purchasing cryptocurrencies with borrowed money could lead to unsustainable debt, especially amid price volatility and some individuals relying on the value of those assets to meet their obligations.
🎯 The authority is considering implementing a complete or partial ban on the use of credit, including credit cards, to finance the purchase of digital currencies.
✨This includes a direction to curb excessive borrowing 💸 and avoid losses resulting from speculative trading.
✨At the same time, qualifying stablecoins may be exempted ✅ from these proposed restrictions, reflecting a potential recognition of their importance in payment and transfer operations.