- Barclays bans credit card crypto transactions from June 2025.
- Credit card crypto purchases blocked.
- Other UK banks have similar restrictions.
Barclays’ decision reflects a growing institutional cautiousness towards the use of credit for volatile crypto transactions, aligning with broader industry trends.
Barclays announced plans to block crypto transactions made via Barclaycard as of June 27, 2025, highlighting the risks associated with purchasing cryptocurrencies. The move mirrors similar actions by other UK banks like Santander and NatWest, emphasizing protective measures against volatility and scams. Barclays stated that debit card and bank transfer options for purchasing cryptocurrencies remain unaffected. However, such transactions via credit card will be strictly prohibited. This measure allows Barclays to mitigate risks linked to leveraged crypto investments and prevent potential financial instability.
From 27 June 2025, we’ll block crypto-transactions made with a Barclaycard because we recognise there are certain risks with purchasing crypto-currencies. – Barclays Official Statement, Barclays Bank
The immediate effect of this policy impacts UK consumers who rely on credit for crypto purchases. The decision mirrors a broader regulatory push across the UK banking sector for tighter control over financial risk management. The prohibition specifically affects Bitcoin and Ethereum transactions, although bank transfers and debit card purchases remain accessible. Financial analysts suggest that such prohibitions may reduce retail investor activity and borrowing for speculative purposes, aligning with existing risk management protocols in response to crypto market volatility.
No regulatory adjustments were cited from UK authorities like the FCA in direct response to this measure. However, similar strategies by other banks reflect shared concerns and emphasize consumer protection and financial stability. Historically, banks’ emphasis on limiting credit-financed crypto purchases has influenced market dynamics. While past actions led to a decline in credit-financed crypto flows, they did not significantly alter on-chain activity. Barclays’ strategy likely aims to curb speculative borrowing, reinforcing conservative banking practices in the digital asset sphere.
