Beginning June 27, 2025, Barclays will no longer allow cryptocurrency transactions via credit cards. This decision comes amid rising concerns about financial risks and regulatory warnings.
Reasons Behind Barclays' Decision
Barclays cited financial risks and the volatility of cryptocurrency investments as the primary reasons for this step. The move aligns with increasing warnings from the UK's Financial Conduct Authority (FCA), urging banks to protect consumers from potential losses related to crypto trading.
Implications for Customers
From June 27, 2025, cryptocurrency purchases using Barclays cards will be declined. However, customers will still be able to withdraw funds from crypto platforms back to their bank accounts. For new investments, customers will need to use alternative methods such as bank transfers or crypto-friendly payment services.
Alternative Payment Options
With card payments blocked, crypto investors can switch to:
* Bank transfers, which are slower but widely accepted. * E-wallets such as PayPal (if supported by the exchange). * Crypto on-ramps that allow direct conversion of fiat to crypto via linked bank accounts.
Barclays' decision to ban credit card crypto transactions reflects a growing trend among UK banks aimed at managing risk and ensuring regulatory compliance. While it may pose inconveniences for some users, it underscores the importance of secure and transparent financial practices when dealing with cryptocurrencies.
