Barclays has announced a ban on the use of credit cards for cryptocurrency purchases effective June 27, 2025. This move is tied to regulatory pressures and is attracting attention in the financial sector.
Barclays' Ban and FCA Regulations
Barclays has decided to prohibit the use of credit cards for purchasing cryptocurrencies starting June 27, 2025. This aligns with directives from the UK Financial Conduct Authority aimed at minimizing fraud risks associated with credit-backed crypto purchases. This decision restricts UK consumers from using credit cards for direct cryptocurrency purchases.
Response to the Ban and Expert Opinions
The new measure has faced sharp criticism from the UK Payments Association, arguing that it limits consumer freedoms and innovation in the financial sector. Riccardo Tordera-Ricchi, representing the association's interests, stated, "We challenge the proposed ban on credit card purchases for crypto, as it unfairly equates legitimate investment activity with gambling... We believe consumers should be trusted to make informed decisions within their existing credit limits."
Market Impact and Consumer Activity
The Barclays ban is part of a broader regulatory trend aimed at managing consumer risks in volatile markets. Bitcoin (BTC) currently trades at $106,961.84 with a market cap of approximately $2.13 trillion. A decrease in retail activity is anticipated to lead to hurdles for innovation within the crypto sector due to increased financial controls.
Barclays' ban on credit cards for cryptocurrency purchases reflects growing regulatory pressures and concerns over consumer risks, eliciting mixed reactions within the financial world.
