Starting June 27, 2024, Barclays will prohibit customers from using Barclaycard to buy cryptocurrencies. This decision aims to protect customers from financial risks associated with asset volatility.
Reasons for Barclays' Decision
According to a statement from the bank, the move is intended to protect customers from the potential volatility of crypto assets and the financial harm it can cause. 'A fall in the price of crypto assets could lead to customers finding themselves in debt they can’t afford to repay,' the bank explained.
History of Crypto Regulation by Barclays
This decision builds on Barclays’ broader stance on crypto, following earlier restrictions placed on payments to exchanges such as Binance. The latest step, however, makes it clear that no crypto-related transactions will be permitted using Barclays-issued credit cards, regardless of the platform or asset involved.
Implications for Customers
The bank encouraged customers to visit the UK Financial Conduct Authority (FCA) website to better understand the risks associated with digital assets. While crypto remains popular among UK investors, this policy change may signal increased banking friction for retail users seeking easy access to digital assets through traditional financial rails.
Barclays' ban on using credit cards for cryptocurrency purchases highlights the growing caution of financial institutions regarding digital assets and could significantly impact customers' access to cryptocurrencies.
