While others have been embracing and adopting crypto in their respective ways, UK banking giant Barclays has announced that it’s pulling the plug on crypto purchases made via its credit cards.
The change kicks in on June 27, and customers trying to swipe their way into Bitcoin or Ethereum with a Barclaycard will find the door firmly shut.
A preemptive step against debt and volatility
According to an update published on the bank’s website, the decision stems from concerns over market volatility and the risk of customers racking up debt they might not be able to manage.
Barclays noted that crypto assets are not protected under the UK’s Financial Ombudsman Service or the Financial Services Compensation Scheme.
In simple terms: if your crypto investment tanks or you lose access to your tokens, there's not much recourse through the usual consumer protection avenues.
“We recognise there are certain risks with purchasing cryptocurrencies,” the statement reads. “A fall in the price of crypto assets could lead to customers finding themselves in debt they can’t afford to repay.”
This isn’t a sudden pivot.
Back in February, Paul Wilmore, managing director at Barclaycard, hinted at this exact move while discussing the bank’s U.S. operations.
At the time, Wilmore suggested that restricting crypto purchases was on the table due to the speculative nature of digital assets.
Barclays joins the list of cautious credit providers
While Barclays’ new policy might ruffle feathers among crypto-savvy consumers, it’s not entirely out of line with broader industry behavior.
Several other major UK and US banks, including Lloyds Banking Group, Virgin Money, JP Morgan Chase & Co, and Citigroup have placed similar restrictions on credit-based crypto purchases, often citing consumer protection and regulatory uncertainty.
Still, this does raise questions about accessibility and retail participation in the crypto space.
The decision could potentially dampen casual investing and raise the barrier for some first-time buyers, especially those who rely on credit cards for convenience.
For now, crypto-curious Barclays customers will need to stick with bank transfers or other methods.
