Barclays Bank has officially announced a ban on the use of credit cards for cryptocurrency transactions in the UK, effective June 27, 2025, citing consumer risks and regulatory compliance.
Details of the Ban
Barclays referenced compliance and risk management assessments as key reasons for its decision. Customers will face restrictions on their ability to use credit cards for purchasing cryptocurrencies like BTC and ETH.
Reaction to the New Policy
Expert opinions are divided. Some believe the move will decrease retail investor interest. "We challenge the proposed ban on credit card purchases for crypto, as it unfairly equates legitimate investment activity with gambling," notes Riccardo Tordera-Ricchi from The Payments Association.
Broader Context and Implications
Barclays' ban is part of a broader trend where banks limit credit-based crypto transactions. Historically, such measures result in temporary drops in retail volumes without significant impacts on the overall market structures. This move aligns with regulatory patterns observed in both the UK and US financial landscapes.
Barclays' ban on cryptocurrency transactions via credit cards highlights the increasing focus on regulation and consumer risk, while the broader market implications remain uncertain.
