Barclays Imposes Ban on Crypto Transactions With Bank Cards

Barclays is set to block its customers from making cryptocurrency transactions with their Barclays cards.

The British lender announced the pending ban earlier this week, saying it would go into effect on Friday (June 27), and that it recognizes “there are certain risks” that come with purchasing crypto.

“We’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 message reads. “There’s also no protection for crypto assets if something goes wrong with a purchase, as they’re not covered by the Financial Ombudsman Service and Financial Services Compensation Scheme.”

The ban was flagged in a report by Coindesk, which noted that it’s not clear why Barclays is making this decision now. Other U.K. banks, including Nationwide and HSBC, made similar moves in 2023, the report added, but that was in the wake of several high-profile crypto collapses.

As PYMNTS wrote at the time, these efforts followed a push by the U.K.’s Financial Conduct Authority (FCA) to crack down on crypto. The regulator had for years considered cryptocurrency a high risk, and went as far as threatening crypto executives with jail time if they violated certain rules.

Regulators on the other side of the Atlantic were in the same boat, warning financial institutions to be wary of “potential heightened liquidity risks” posed by certain sources of funding from crypto-related entities.

Since then, a changing of the guard in Washington has ushered in a new attitude toward digital assets and banking, PYMNTS wrote earlier this week.

“Still, the transition is not without peril. Crypto markets remain volatile, cyber threats are evolving and the regulatory landscape is still under construction,” that report said. “For banks, entering the space without a clear strategy could prove costly. Crypto in 2025, ultimately, isn’t about hype; it’s about infrastructure, compliance and risk management.”

Banks will also need to examine their internal capabilities, that report said. From hiring blockchain-savvy compliance officers to developing secure custody solutions and forming partnerships with crypto-native firms, the cost of entry is high.

“The flip side of the equation is the competitive landscape,” PYMNTS added. “Crypto-native firms and nimble FinTechs are already seizing market share. Companies like Coinbase, Circle, Fireblocks and Anchorage Digital have built robust infrastructure, compliant pathways and brand loyalty among digital-first users.”