Barclaycard, a part of Barclays Bank, has announced it will block all credit card cryptocurrency purchases for UK customers starting June 27, 2025.
Barclaycard Announcement
Barclaycard, a key entity within Barclays Bank, has announced a ban on cryptocurrency purchases with credit cards in the UK, effective June 27, 2025.
Reasons for Restriction
Barclaycard's decision to halt crypto purchases reflects a growing trend among financial institutions aimed at mitigating consumer risks associated with volatile digital currencies. "We are obligated to prioritize consumer risk awareness regarding cryptocurrency purchases, which are subject to high volatility and uncertainties," said Paul Wilmore, Managing Director at Barclaycard.
Reactions and Consequences
The ban affects popular cryptocurrencies like Bitcoin and Ethereum, potentially reducing retail investment volumes. Changes in consumer purchase behaviors may lead to on-chain impacts. Critics of the policy, like Riccardo Tordera-Ricchi, have emphasized trust in consumer decisions, presenting the ban as excessive. Industry experts forecast potential regulatory adaptations, as historical trends in financial policies suggest increased scrutiny.
Barclaycard's decision to ban crypto purchases is viewed as part of a broader trend among financial institutions to protect consumers amid cryptocurrency volatility.
