Barclays Pulls the Plug: Credit Card Crypto Purchases Blocked Amid Market Turmoil
Barclays just slammed the brakes on crypto—again. The British banking giant has abruptly cut off credit card support for digital asset purchases, leaving customers scrambling for alternatives.
Another knee-jerk reaction from traditional finance?
The move reeks of institutional panic as Bitcoin flirts with $100K. While Barclays cites 'risk management,' skeptics see yet another attempt to slow retail adoption while Wall Street quietly builds positions. After all, when did banks ever miss a chance to 'protect' customers from their own financial freedom?
Pro tip: Debit cards still work—for now. But expect more 'protective measures' as legacy finance fights to stay relevant in the crypto revolution.
FCA Binance warning causes crypto banking hiatus
Barclays’ decision comes against the backdrop of the FCA’s public notice on Monday, in which the regulator barred Binance Markets Limited from offering any regulated financial services within the UK as from June 27.
The FCA has repeatedly issued cautions over the risks of crypto investments, particularly through online platforms and social media advertising that promise high returns.
“Be wary of online and social media advertisements that promise high returns on investments in crypto assets or related products,” the FCA wrote in its statement.
The authority does not regulate assets like Bitcoin or Ether directly, but it oversees certain crypto derivatives and tokens that fall under its definition of securities.
Binance responded to the FCA’s announcement by insisting that Binance Markets Limited is a distinct legal entity from Binance.com.
Crypto fraud prompts bank policy change
According to the FCA, crypto platforms are being used for illicit activities in organized fraud networks. Criminals exploit crypto exchanges to convert stolen funds into digital assets, making them harder to trace.
UK consumers lost over £75 million to scams originating on social media, according to the watchdog.
The FCA had already banned Binance Markets Limited from operating in the UK back in June 2021 due to its failure to comply with regulatory obligations. That ban remains in effect today.
In response, many UK banks have moved to block customer transfers to crypto platforms. A recent industry assessment shows that approximately 47% of major UK banks offer no support for cryptocurrency transactions. Of these, at least seven institutions, including high-street banks, prohibit both transfers and debit or credit card purchases involving digital assets.
Banks have lambasted crypto platforms like Binance, Kraken, Kucoin, and Coinbase for allegedly failing to enforce adequate safeguards against money laundering. They argue that the lack of transaction tracking allows criminals to use the platforms for illicit financial flows.
Binance and Kraken have firmly denied the accusations, reiterating that they implement anti-money laundering procedures and are committed to protecting users from fraud.
Barclays joins others such as TSB, The Co-operative Bank, and Santander in fully blocking transfers to all crypto exchanges.
A Binance spokesperson said the company was “disappointed that Barclays appears to have taken unilateral action based on what appears to be an inaccurate understanding of events.” The spokesperson added that Binance.com is still operational and accessible to UK residents, despite the regulatory action taken against Binance Markets Limited.
The Bank of England is preparing to release new guidelines for banks’ exposure to digital assets, expected to take effect by 2026.
Last week, David Bailey, executive director of prudential policy at the Bank of England, talked about the proposals during a speech at the Risk Live Europe conference in London. He noted that regulators now prefer adding restrictive limits to digital assets, until more evidence is available.
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