Beginning on June 27, 2025, Barclays Bank plans to implement a comprehensive ban on credit card purchases of cryptocurrencies. As bankers and regulators become more cautious about the risks associated with digital assets, the ban is one of the most recent measures by major UK banks.
The new policy, announced on June 25, will block all cryptocurrency transactions made using its credit cards, including those conducted on sites such as eToro and Coinbase, which the FCA regulates.
The main reasons for the prohibition, according to the bank, were the “volatile nature of crypto prices” and the possibility that clients would “find themselves in debt they can’t afford to repay.”
Barclays stressed in a statement on its website that clients have limited options if transactions go wrong. This is because cryptocurrency assets are not covered by the Financial Services Compensation Scheme or the UK’s Financial Ombudsman Service.
Additionally, the measure aligns Barclays with an increasing number of UK banks that have already limited or prohibited credit card-funded cryptocurrency transactions, including Lloyds, HSBC, NatWest, and JPMorgan Chase UK. Together, these institutions have prevented more than 50 million clients from having direct access to digital assets through credit.
Regulatory Influence On The Choice By Barclays Bank
The UK’s Financial Conduct Authority (FCA), which has stepped up its efforts to protect consumers in the face of the cryptocurrency market’s infamous price volatility and frequent frauds, is closely linked to the ruling. Both Barclays and the FCA caution that using borrowed funds to purchase highly volatile assets might result in insurmountable debt, particularly if cryptocurrency prices fall.
Since credit cards have historically made it possible for people to make impulsive, leveraged bets in cryptocurrencies, the restriction may result in a “softening in retail-driven rallies.” The closure of this avenue may result in a short-term drop in trading volumes for popular tokens. These include Bitcoin and Ethereum, as well as a decrease in retail engagement in cryptocurrency marketplaces.
For cryptocurrency investors in the UK, the ban does not, however, mean the end. There are still other payment options available, including digital wallets, bank transfers, and debit cards. As Barclays and other traditional banks tighten regulations, fintech companies like Monzo, Revolut, Wirex, and Ziglu may even see a spike in new clients as they continue to provide crypto-friendly services.
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