The Payments Association has expressed concern over the Financial Conduct Authority’s (FCA) proposed ban on using credit cards to purchase crypto, stating that consumers “should be empowered to make informed choices within predefined credit limits”.
In a formal response to the DP25/1 discussion paper, the association claims that the proposed ban “seems to equate crypto purchases with gambling” and that the overall regime should mirror the approach to that applied for the use of credit cards to purchase traditional financial products.
The Payments Association are advocating for regulatory education over prohibition in order to position the UK as a “safer, regulated crypto hub”.
Riccardo Tordera-Ricchi, director of policy and government relations at The Payments Association, said: “As the FCA works to regulate cryptoassets, The Payments Association advocates strongly for a nuanced and proportionate approach.”
Due to the existing fraud-preventing restrictions on the purchase of crypto products, this proposed ban risks denying access to crypto products entirely, according to the association, as it eliminates the only remaining purchase option.
“Striking a thoughtful balance between consumer protection and innovation is vital to secure both market safety and competitive advantage,” the response outlines.
Tordera-Ricchi went further. “Our banking sector members note that existing industry practices already enable controls on credit card use for high-risk investments beyond crypto,” he said.
“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.”
The association points to the Restricted Mass Market Investments (RMMI) regime as a regulatory tool for controlling access to higher-risk crypto lending and borrowing products.
This, according to The Payments Association’s response, could provide an intermediate solution “that balances consumer protection with market access”.
“We strongly recommend that the guidance be technical, specific, and legally rigorous to be meaningful in practice. At the same time, it should avoid becoming a de facto roadmap for regulatory arbitrage,” the report states.
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