Barclays Bans Credit Card Crypto Purchases Citing Volatility

Barclays Bank has implemented a policy prohibiting its customers from using credit cards to conduct cryptocurrency transactions, effective June 27, 2025. This decision impacts all major cryptocurrencies, including Bitcoin and Ethereum, and is driven by concerns over market volatility and consumer protection. The bank cited the lack of coverage by the Financial Ombudsman Service and the Financial Services Compensation Scheme as primary reasons for this policy change, highlighting the potential risks of customers falling into debt due to sudden price declines in crypto assets.

The updated policy means that while users will be unable to buy or sell crypto using credit cards, other onramp methods will remain available. This decision aligns with similar measures taken by other major banks, such as Lloyds Banking Group in 2018 and Chase UK in 2023, reflecting ongoing concerns over fraud and market volatility. The move by Barclays is part of a broader trend among UK banks to mitigate risks associated with cryptocurrency, emphasizing stricter controls on retail crypto access while maintaining safety for consumers.

While the effect on broader market liquidity may be minimal due to the continued availability of alternative methods, the rule could lead to short-term fluctuations in fiat-to-crypto flows. Historical trends suggest no sustained global disruptions following such prohibitions, as alternative purchasing methods are readily available. The decision by Barclays underscores the need for greater regulatory clarity and consumer safeguards in the rapidly evolving world of digital assets, as the cryptocurrency market continues to evolve and present new challenges and opportunities for traditional financial institutions.