Barclays Restricts Crypto Purchases with Credit Cards
- Barclays prohibits credit card crypto transactions from June 27, 2025.
- Ban initiated due to market volatility concerns.
- Alternative payment methods remain available for crypto purchases.
Barclays Bank has decided to prohibit its customers from using credit cards to conduct cryptocurrency transactions. Effective June 27, 2025, the ban will impact all major cryptocurrencies, including Bitcoin and Ethereum. The decision is part of Barclays’ strategy to address consumer protection concerns, particularly in volatile markets. It reflects a broader trend among UK banks to mitigate risks associated with cryptocurrency.
There are certain risks related to cryptocurrencies as the sudden decline in the prices of crypto assets could lead to customers falling into debt and failing to repay borrowed funds. Crypto is not covered by the Financial Ombudsman Service and Financial Services Compensation Scheme.
The decision by Barclays, announced through their official website, focuses on potential debt risks arising from the volatile nature of crypto prices. The bank cited the lack of protection offered by the UK Financial Ombudsman Service and the Financial Services Compensation Scheme as primary reasons for this policy change. This move could potentially impact the purchase activities of UK retail users who rely on Barclaycard.
The updated policy means that while users will be unable to buy or sell crypto using credit cards, other onramp methods will remain available. This decision is consistent with similar measures taken by Lloyds Banking Group in 2018 and Chase UK in 2023, reflecting ongoing concerns over fraud and market volatility.
While the effect on broader market liquidity may be minimal due to the continued availability of alternative methods, the rule could lead to short-term fluctuations in fiat-to-crypto flows. Historical trends suggest no sustained global disruptions following such prohibitions, as alternative purchasing methods are readily available.
Barclays’ move aligns with regulatory trends in the UK, emphasizing stricter controls on retail crypto access while maintaining safety for consumers. Although no public statements have been made by prominent crypto figures, industry experts will likely continue to assess the policy’s impact on market dynamics.
