Barclays Bank announced that from June 27, 2025, it will prohibit all cryptocurrency purchases using its credit cards for UK customers. The bank cited concerns about market volatility, consumer debt risks, and the absence of regulatory safeguards as reasons for the policy.
The decision highlights the growing friction between traditional finance and digital assets. Unlike conventional investments, crypto transactions lack protection under the Financial Ombudsman Service or the Financial Services Compensation Scheme. Barclays emphasized that the potential for sudden crypto price drops could leave cardholders unable to repay borrowed funds, justifying their risk-averse stance.
This move is consistent with Barclays' longstanding skepticism towards cryptocurrencies, joining other major UK banks such as JPMorgan, Bank of America, Chase UK, and Starling, which have imposed similar restrictions or bans on crypto-related credit card transactions.
The Payments Association criticized the policy, arguing that a blanket ban equates crypto investment with gambling, unfairly restricting consumer choice within their existing credit limits.
Customers in the UK will face fewer mainstream options for buying cryptocurrencies with credit cards. Some alternatives include using debit cards, third-party payment platforms like Apple Pay or Google Pay, and services such as MoonPay that provide broader non-custodial crypto purchase options.
Interestingly, Barclays continues to explore blockchain technology for institutional purposes, having participated in private blockchain pilots and tokenized collateral networks, reflecting a nuanced approach to blockchain applications separate from retail crypto transactions.