Barclays, a prominent UK-based financial institution, has announced a sweeping prohibition on cryptocurrency transactions made through its bank cards, set to commence on June 27, 2025. This move is driven by the bank’s growing concern over the volatility and uninsured status of crypto assets, which present considerable risks for their clients. Barclays warns that sudden drops in value could lead customers to incur debts that are difficult to manage.
What Does the Ban Encompass?
Under the new directive, Barclays will disallow any cryptocurrency purchases or sales using their bank cards. This decision is based on the financial dangers of substantial losses from which clients might struggle to recover. Unlike traditional financial securities, crypto investments lack legal safeguards, making them considerably riskier.
Clients investing in cryptocurrency may find themselves without the protection usually afforded by institutions like the UK Financial Ombudsman Service or the Financial Services Compensation Scheme. This regulatory void significantly heightens the risk to customers, prompting Barclays’ preventative approach.
“Conducting cryptocurrency transactions with a Barclaycard will no longer be possible. From June 27, 2025, we will block crypto transactions using Barclaycards. Given the risks associated with buying cryptocurrencies, including price drops leading to unpayable debts and lack of protection in transaction issues, as crypto assets are not covered by the Financial Ombudsman Service or Financial Services Compensation Scheme.”
Is Barclays Involved in Crypto?
Despite the prohibition, Barclays appears to maintain ties with the crypto industry. Previous reports reveal substantial investment in the IBIT Bitcoin exchange-traded fund, operated by BlackRock, a US-based entity. Barclays’ involvement reportedly includes 2,473,064 shares valued at around $137 million, supposedly maintained for private clients.
Although direct card-based crypto transactions are banned, Barclays’ clients might still engage in the market via other financial products. Historical patterns have shown banks like those in Turkey and the UK occasionally reversing similar bans in response to market conditions and evolving regulations.
Barclays’ decision stems from the desire to enhance client protection and ensure compliance with regulations amid the complex landscape of digital assets. As the cryptocurrency market continues to grow, the impact of such institutional policies aimed at risk mitigation will unfold.
– Barclays to implement policy on June 27, 2025.
– Direct crypto purchases blocked via Barclays bank cards.
– Barclays invests in crypto via BlackRock’s IBIT ETF.
– Other banking institutions have revised crypto policies.
While its direct involvement in customer crypto transactions has ceased, Barclays’ indirect presence indicates a nuanced approach. By balancing risk management with investment opportunities, Barclays navigates the intricacies of the evolving cryptocurrency sector.
