Barclays to Block Crypto Credit Card Payments Citing Risk Concerns from June 27

Barclays, one of the UK’s leading banks, has announced that starting June 27, 2025, customers will no longer be able to use Barclaycard or other Barclays-issued credit cards to purchase cryptocurrencies.

Protecting Customers Amid Market Risks

Barclays’ decision stems from the volatile nature of cryptocurrencies, which the bank warns could lead to unmanageable debt for customers.

“From 27 June 2025, we’ll block crypto-transactions made with a Barclaycard because we recognise there are certain risks with purchasing crypto-currencies.” The bank’s official statement highlights that “fWe’re doing this because a fall in the price of crypto assets could lead to customers finding themselves in debt they can’t afford to repay.”

The statement further notes that cryptocurrency transactions lack protection from the UK’s Financial Ombudsman Service or Financial Services Compensation Scheme, leaving customers vulnerable in case of disputes or losses.

This move aligns with Barclays’ earlier considerations in 2018, when Paul Wilmore, a senior executive in its credit card division, indicated the bank was reviewing policies country-by-country to address risks tied to the cryptocurrency investment frenzy

The ban is part of a broader trend among UK banks. Institutions like Lloyds Banking Group, Virgin Money, and others have implemented similar restrictions in recent years, citing concerns over fraud and market instability. In 2023, JPMorgan’s UK division banned crypto purchases with credit cards due to a surge in fraud cases, a precedent Barclays now follows.

The UK’s Financial Conduct Authority (FCA) has repeatedly warned consumers about the risks of crypto investments, particularly through online platforms and social media promotions promising high returns.

Institutional Caution vs. Strategic Investment

While Barclays restricts retail customers from using credit cards for crypto purchases, the bank itself remains engaged in the digital asset space at an institutional level.

Its latest 13F filing with the U.S. Securities and Exchange Commission reveals holdings worth approximately $131 million in BlackRock’s iShares Bitcoin Trust (IBIT), signaling confidence in cryptocurrencies as an institutional investment.

This contrast highlights a nuanced approach: protecting retail customers from perceived risks while capitalizing on crypto’s potential through structured investments.

The UK’s regulatory environment adds complexity to Barclays’ decision. The FCA’s updated crypto regulations in early 2025 aim to balance consumer protection with fostering digital asset adoption, as Economic Secretary Bim Afolami has expressed ambitions for the UK to become a global crypto hub. However, the Bank of England plans to introduce guidelines in 2026 limiting banks’ exposure to digital assets, signaling a cautious regulatory outlook

Alternative Pathways for Crypto Investors

Despite the credit card ban, Barclays customers can still access cryptocurrencies through other means, such as debit cards, bank transfers, or third-party payment platforms like Apple Pay, Google Pay, or MoonPay. Fintech platforms like Revolut, Wirex, and Ziglu also offer UK investors alternative avenues for crypto trading, providing flexibility in a rapidly evolving market.

MartyParty, a noted Crypto Market Analyst, commented, "Banks have become aware that retail is following the Treasury strategy and converting debt into hard money and they don’t like it," suggesting a shift in financial behavior. This shift may accelerate the adoption of DeFi solutions as investors seek workarounds to traditional banking restrictions.