Barclaycard Blocks Crypto Buys via Credit Cards
Starting 27 June 2025, Barclaycard will prohibit its customers from using credit cards to purchase cryptocurrency. The announcement, made via the company’s official website, marks a firm stance on digital asset risk management. The decision is driven by growing concerns about customer safety, rising debt, and the lack of regulatory protections in crypto markets.
Barclaycard explains the risks clearly: if the value of digital assets plummets, customers may struggle to repay borrowed funds. The company warns that using credit to invest in crypto can quickly lead to unaffordable debt. “A fall in the price of crypto assets could lead to customers finding themselves in debt they can’t afford to repay,” Barclaycard states.
Why the Ban Now?
This policy shift comes at a time when crypto markets continue to draw in new retail investors. However, UK banks are becoming increasingly cautious. The crypto space lacks the financial safety nets that protect traditional investments. Barclaycard emphasizes that crypto purchases do not fall under the Financial Services Compensation Scheme or the Financial Ombudsman Service. This means consumers have little protection if things go wrong.
The bank is following a growing trend. HSBC and Nationwide, two of the UK’s biggest lenders, had already restricted credit card crypto buys back in 2023. These moves reflect a wider effort among financial institutions to shield customers from speculative risk.
Debit Still Accepted – For Now
Barclaycard’s ban only applies to credit card transactions. Customers can still use debit cards to buy crypto, though that could change if market volatility increases. For now, crypto platforms that accept debit payments will remain accessible to Barclaycard users.
This change sends a clear message: financial institutions are reevaluating how customers interact with digital assets. Without regulation, the use of credit to buy high-risk assets is no longer acceptable.
As the regulatory environment evolves, and with consumer protection in focus, expect more institutions to implement similar policies. Barclaycard’s crypto block is one of the strongest signals yet that banks are drawing new lines in the sand.