Barclays Bans Crypto Purchases on Credit Cards from June 2025

Barclays, a prominent UK banking institution, has announced that it will begin blocking all cryptocurrency purchases made with its credit cards starting June 27, 2025. This decision underscores the growing tension between digital assets and traditional finance, as well as the increasing scrutiny that cryptocurrencies face from major financial institutions.

The bank cited concerns over market volatility and consumer debt risks as the primary reasons for the ban. Barclays argued that sudden price drops in the cryptocurrency market could leave cardholders unable to repay borrowed funds, potentially leading to significant financial strain for consumers. The policy also highlights the lack of regulatory safeguards for crypto purchases, noting that these transactions are not covered by the Financial Ombudsman Service or the Financial Services Compensation Scheme, which provide protections for traditional investments.

Barclays’ move is part of a broader trend among major financial institutions that have either fully blocked or tightly constrained crypto-related transactions. Other banks, including JPMorgan, Bank of America, Chase UK, and Starling, have implemented similar restrictions, reflecting a cautious approach to digital assets. This stance is consistent with Barclays’ longstanding skepticism toward crypto, as evidenced by its past actions, such as freezing a customer’s account for attempting a transfer to Crypto.com in 2021.

The decision has sparked mixed reactions within the industry. The Payments Association, for instance, has historically opposed blanket crypto bans, arguing that they unfairly equate digital assets with gambling. The group has advocated for consumer trust and the ability to make informed decisions within existing credit limits, challenging proposed UK crackdowns on credit card crypto purchases.

With Barclays exiting the space via credit rails, UK crypto users are left with fewer mainstream onramps for accessing digital assets. While some banks, like RBS, remain comparatively open to crypto activity, others such as NatWest and Metro Bank have tightened restrictions or blocked transactions outright. Users looking for alternatives may need to shift to debit payments, use third-party payment methods like Apple Pay or Google Pay, or rely on platforms that offer non-custodial services and broader acceptance rates.

Interestingly, Barclays’ restriction on crypto credit card transactions contrasts with its own exploration of blockchain technology for institutional use. In 2017, the bank’s CTO discussed private, permissioned blockchain pilots aimed at streamlining trade processes. More recently, Barclays participated in a landmark institutional trade using JPMorgan’s Onyx tokenized collateral network alongside BlackRock, showcasing its engagement with blockchain frameworks. This dual approach highlights the bank’s cautious yet exploratory stance toward digital assets, balancing risk management with innovation.