Barclays to Block Cryptocurrency Purchases on Credit Cards Starting June 27
London, June 25, 2025 – Barclays, the UK-based banking giant, announced it will prohibit cryptocurrency transactions made through its Barclaycard credit cards beginning Friday, June 27. The decision underscores growing concerns over the risks posed by cryptocurrency volatility and the lack of regulatory protections for consumers using credit to buy digital assets.
Reasoning Behind the Ban
Barclays cited the unpredictable nature of cryptocurrency prices as a primary factor behind the move. The bank expressed worry that sudden price drops could leave customers with debts beyond their ability to repay. A statement posted on Barclays’ website explained:
“We’re doing this because a fall in the price of crypto assets could lead to customers finding themselves in debt they can’t afford to repay. There’s also no protection for crypto assets if something goes wrong with a purchase, as they’re not covered by the Financial Ombudsman Service and Financial Services Compensation Scheme.”
Previously, Barclays had allowed credit card users to purchase cryptocurrencies since at least 2018, enabling access to digital assets via major exchanges. As of 2023, the bank reported having over five million credit card accounts in the UK alone. A Barclays spokesperson declined to provide further comment on the recent decision.
Context: UK Regulatory Debate on Crypto and Credit
The ban comes amid heightened debate across the United Kingdom regarding consumer protections and restrictions on how cryptocurrencies can be purchased. On May 2, the UK’s Financial Conduct Authority (FCA) published a discussion paper soliciting opinions on whether restrictions should be implemented to prevent or limit crypto purchases using credit.
This regulatory contemplation aims to safeguard consumers from the potential financial harm linked with the speculative nature of cryptocurrencies, especially when bought on credit—a practice that could exacerbate losses.
Industry Pushback from Payments Association
The Payments Association, a London-based trade organization, responded critically to the FCA’s proposed restrictions. In their submission, the group argued that banning credit card crypto purchases equates digital assets unfairly with gambling or similarly high-risk activities.
They noted:
“Concerns arise regarding the proposed ban on using credit cards to purchase crypto. This suggestion seems to equate crypto purchases with gambling; instead, consumers should be empowered to make informed choices within predefined credit limits.”
The Payments Association emphasized that credit card issuers already have mechanisms in place to regulate and restrict risky purchases, including for cryptocurrencies. They also pointed out that in some cases, individuals might be blocked from using cash to buy crypto, leaving credit cards as an alternative payment method.
Additional Costs and Considerations
Consumers should be aware that purchasing cryptocurrency with credit cards can involve higher costs. According to financial analyst site Bankrate, some credit card issuers classify crypto purchases as cash advances, which incurs elevated fees and interest rates from the date of the transaction, often without a grace period.
Looking Ahead
Barclays’ decision marks a significant development in the UK’s evolving stance on cryptocurrency consumer protection. As digital asset adoption grows, regulators and financial institutions alike are grappling with balancing innovation and safeguarding users from financial harms related to volatile markets and complex products.
The industry will closely watch whether other banks follow Barclays’ lead or if regulatory measures instituted by the FCA take a firmer grip on crypto transactions involving credit.
For continued updates on Barclays’ crypto transaction policies and the UK’s regulatory environment, stay tuned to Cointelegraph.