Barclays restricts cryptocurrency transactions on credit cards
Date: 2025-06-26 Author: Henry Casey Categories: BUSINESS
The British bank Barclays has decided to block the ability to purchase cryptocurrency using credit cards. This restriction is aimed at protecting customers from potential losses associated with the instability of digital assets and the lack of regulatory mechanisms at the national level. In particular, in the event of losses, cryptocurrency holders cannot count on help from such structures as the UK Financial Ombudsman or the Financial Services Compensation Scheme.
According to CryptoCompare analyst James Davis, such steps have already become common practice among large British banks. He noted that Barclays' decision fits in perfectly with the current course of financial institutions to tighten control over their clients' cryptocurrency transactions. Previously, similar bans were introduced by banks such as Lloyds Bank, Halifax, Bank of Scotland, Starling, HSBC, Santander UK and Nationwide Building Society.
The UK financial regulator, the Financial Conduct Authority (FCA), also previously announced plans to limit the use of borrowed funds to purchase crypto assets. First of all, this concerns transactions using credit cards. As the agency explained, such a step is necessary against the background of the high level of indebtedness of the population, which makes the use of borrowed funds in risky transactions, including the purchase of cryptocurrencies, especially dangerous.
Thus, Barclays' actions reflect the general strategy of the British banking sector aimed at reducing the risks associated with the turnover of digital assets, and are in line with the regulator's recommendations. According to experts, such measures may be strengthened in the future and extended to other forms of interaction with cryptocurrencies.
