Barclays to Block Credit Card Crypto Purchases Over Debt Risks
- Barclays will block crypto purchases via credit cards starting June 27, citing debt risks and a lack of consumer protections.
- Despite the retail ban, Barclays holds approximately $131 million in BlackRock’s Bitcoin ETF, according to its latest SEC filing.
In a move set to impact thousands of retail investors, Barclays has announced it will block all cryptocurrency purchases made using its credit cards beginning June 27, 2025.
The bank cited growing concerns over customer debt and the lack of regulatory protection for crypto assets as primary drivers for the decision.
Rising Risk Prompts Policy Shift
The change, disclosed via Barclays’ official channels, applies to all Barclaycard-branded credit cards and prohibits their use on exchanges and crypto trading platforms.
According to the bank, crypto’s sharp price swings could leave users with unmanageable debt.
Barclays noted that crypto assets are not covered by key consumer protection mechanisms in the UK, including the Financial Ombudsman Service and the Financial Services Compensation Scheme.
Without these safeguards, customers are at higher risk of financial loss if a transaction goes wrong.
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While the ban limits retail investor access, Barclays maintains a significant position in the institutional crypto space.
Its latest SEC 13F filing revealed a $131 million investment in BlackRock’s iShares Bitcoin Trust (IBIT). The apparent contradiction has sparked discussion around the differing standards applied to institutional versus retail exposure.
UK Banks Tighten Crypto Controls
Barclays is not alone in its cautious stance. Several other major UK banks, including HSBC, Nationwide, Lloyds, Virgin Money, JPMorgan, and Citigroup, have taken steps to restrict or ban credit card-funded crypto purchases.
Industry observers say the uptick in fraud and scams linked to crypto trades has played a significant role in driving these decisions.
The clampdown comes in the wake of major crypto sector collapses in 2023, which left many retail investors facing steep losses.
Despite growing efforts by players like Mastercard to integrate blockchain-based solutions, traditional banks remain wary of exposing customers to crypto volatility. Barclays says it will continue to assess digital asset risks on a country-by-country basis.
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