Barclays Slams the Brakes on Crypto: Bank Card Purchases Blocked Effective Immediately

Barclays just dropped a bombshell on crypto traders—no more digital asset purchases using their bank cards. The move sends shockwaves through retail investment circles as traditional finance doubles down on its love-hate relationship with decentralized money.

Why now? The bank’s press release cites 'risk management' (read: we’d rather you stick to overpriced ETFs). Insiders whisper about regulatory pressure, though Barclays’ own crypto custody arm launched just last year—because nothing says 'volatility risk' like hedging your own bets.

For UK customers, the implications are stark: no quick dips into Bitcoin during lunch breaks, no altcoin splurges after pints. Meanwhile, crypto exchanges report a 20% uptick in P2P trading inquiries within hours of the announcement. Banks build walls; traders find tunnels.

One cynical take? This reeks of legacy institutions scrambling to control the narrative—and the cash flow—as stablecoins eat their lunch. The real question: will Barclays reverse course when (not if) the next bull run sends institutional FOMO into overdrive?

Comprehensive Crypto Transaction Ban

The bank issued a statement prohibiting customers from buying or selling crypto assets with bank cards. Barclays underlines the potential financial peril of steep losses, which customers might not be able to recover from. The bank’s caution reflects the absence of legal protection for crypto investors, which conventional financial securities often ensure.

Regarding crypto assets, customers lack recourse through mechanisms like the UK Financial Ombudsman Service or the Financial Services Compensation Scheme. This regulatory gap contributes to the risks for customers, underscoring Barclays’ protective stance.

“Conducting cryptocurrency transactions with a Barclaycard will no longer be possible. From June 27, 2025, we will block crypto transactions using Barclaycards. Given the risks associated with buying cryptocurrencies, including price drops leading to unpayable debts and lack of protection in transaction issues, as crypto assets are not covered by the Financial Ombudsman Service or Financial Services Compensation Scheme.”

Barclays’ Indirect Crypto Involvement

Despite the ban, Barclays is reportedly indirectly involved in the crypto sector. Past reports indicate significant investments in the IBIT Bitcoin$0.000049 exchange-traded fund launched by the US-based BlackRock, with holdings valued at approximately $137 million.

Barclays is said to own 2,473,064 shares in this fund, which became tradable in early 2024, likely maintained for private clients. However, direct card-based access to crypto assets is prohibited under the current policy.

Alternatives such as indirect financial products might still allow market participation. Trends show banks occasionally retracting similar restrictions, with UK banks revising stances post-2021 and Turkish banks historically adjusting crypto service policies.

The driving factors behind Barclays’ decision likely include client safety and regulatory compliance, given the volatile and uninsured landscape of digital assets. As the crypto market evolves, the prevalence of such institutional measures to mitigate risks remains to be seen.