TLDR
- Barclays will block all cryptocurrency-related transactions made with its credit cards starting 27 June 2025.
- The bank said the decision aims to reduce financial risks linked to crypto price volatility and unregulated markets.
- Customers will no longer be able to use Barclaycard credit cards to purchase or invest in cryptocurrencies.
- Barclays noted that crypto transactions lack protection from the Financial Ombudsman Service and Compensation Scheme.
- The bank advised customers to visit the FCA website to learn more about the risks of crypto investments.
Starting 27 June 2025, Barclays will block all cryptocurrency-related transactions made with its bank cards, including Barclaycard credit cards. This move directly impacts customers attempting to use credit to buy or invest in digital currencies. This decision reflects an increased focus on financial risk and growing regulatory pressure.
Barclays Limits Credit Card Use for Crypto Transactions
Barclays confirmed it will no longer permit purchases of cryptocurrencies through any of its issued credit cards or debit services. The bank cited the potential financial risks tied to digital asset volatility and unsecured consumer exposure. This change affects both retail and business cardholders engaging in crypto activities.
Barclays pointed to price swings in crypto assets that could result in unaffordable debt when customers use borrowed money for purchases. It emphasized the absence of regulatory support for such transactions as a major concern for risk management. Moreover, consumers lack protection under the Financial Ombudsman Service and the Financial Services Compensation Scheme.
The bank stated that it seeks to support financial responsibility and limit scenarios where users face large unexpected losses. It further explained that crypto markets often remain unregulated, making them high-risk when accessed via borrowed funds. As a result, Barclays has opted for a firm approach that it believes aligns with long-term customer stability.
Consumer Protections and Crypto Market Risk
Barclays has underlined that customers have little to no recourse in cases of failed or disputed crypto transactions. These types of transactions fall outside the coverage of key consumer safeguards typically applied to regulated financial products. As such, clients may lose their funds without recovery options.
In addition, the decision echoes repeated warnings issued by the Financial Conduct Authority regarding unregulated crypto investments. The FCA’s statements highlight dangers involving scams, price manipulation, and uncertain asset valuations. Barclays directed customers to official FCA materials to better understand these financial hazards.
The bank also noted a growing number of scams tied to crypto investments, often linked to fraudulent trading platforms or unverified exchanges. Without institutional regulation, tracking or reversing such payments remains difficult. Barclays views this environment as unsuitable for credit-based spending.
Alignment with Broader Financial Sector Policies
Barclays joins other UK banks that have adopted similar restrictions on crypto-related credit transactions over recent years. The trend signals that major financial institutions aim to reduce exposure to unregulated digital assets. This shift marks an effort to separate traditional credit services from speculative financial behavior.
Earlier this month, the Bank of England indicated plans to impose tighter restrictions on banks’ crypto exposure by 2026. The Bank’s executive director, David Bailey, said banks would be encouraged to maintain minimal involvement in volatile crypto holdings. He cited investor vulnerability and risk of total loss as contributing factors.
With its latest measure, Barclays reinforces this direction and confirms its role in setting a cautious industry benchmark. While crypto remains a growing sector, the bank’s decision suggests a strong move toward risk-averse credit policy. Barclays continues monitoring the sector but maintains a clear stance against credit transactions using crypto.
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