Daniel Walker
Barclays announced it will ban all cryptocurrency purchases via credit cards starting June 27, citing growing worries about price swings and the risk of unsustainable consumer debt. The bank emphasized that the lack of consumer protection in the digital asset space was a pivotal reason for this decision.
โThere is no protection for crypto purchases if something goes wrong, as these transactions arenโt covered by the Financial Ombudsman Service or the Financial Services Compensation Scheme,โ stated a notice on the bankโs official help page.
A Growing Trend Among UK Lenders
Barclays is joining a growing list of UK institutions that have barred credit card crypto purchases. In 2023, JPMorgan Chase UK introduced a ban following a sharp rise in scam-related complaints, while TBC Bank and Lloyds Bank also blocked both credit card and direct deposit transactions related to digital assets.
More Access Through Payment Networks
While traditional banks are applying restrictions, payment giants are expanding access to crypto. In fact, Mastercard announced a collaboration with Chainlink earlier this week, making it possible for cardholders to swap fiat for tokens directly on-chain, highlighting the growing divide between traditional banking policies and the evolution of digital payments.
