Barclays Bank has announced that customers will block using Barclaycard credit cards to purchase Crypto from June 27th
The move was quietly confirmed in the newly updated FAQ section of the bank’s official website.
According to Barclays, the decision stems from concerns about consumer protection and repayment risks. The bank warned that crypto price volatility could expose users to debts that they could not control.
Banks also point out that digital assets do not fall under the UK financial protection measures, and affected customers are relying on them if the transaction is not successful.
Explained:
“We’re doing this because if cryptocurrency prices drop, it can lead to customers find debts that they can’t afford to pay back, and so if there’s a problem with purchasing, there’s no cryptocurrency protection either,” he said.
The move reflects broader regulatory debate in the UK, and has recently been seeking ways to limit cryptocurrency purchases made with borrowed funds by the Financial Conduct Authority (FCA).
The regulator highlights the risks associated with leveraging credit to invest in highly volatile assets, particularly for inexperienced retail investors.
However, the Barclays decision arrives several months after the bank disclosed a $131 million stake in BlackRock’s Ishares Bitcoin Trust (IBIT). The investment is one of a growing list of institutions exposed to US spot Bitcoin ETFs.
Meanwhile, the contrast between restricting access to customers and increasing crypto holdings refers to new gaps in how traditional financial institutions approach the crypto sector.
The new policy could protect users from dangerous borrowing practices, but it could also encourage investors to use non-traditional platforms.
With this in mind, industry analysts are forecasting increased demand for alternative on-ramps, such as fintech applications and distributed services that bypass traditional banking systems.
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