Barclays Blocks Crypto Purchases via Barclaycard Citing Consumer Risks

Barclays Bank will prohibit customers from using Barclaycard credit cards to purchase cryptocurrencies starting June 27. The decision, quietly added to the bank's FAQ section, stems from concerns over volatile asset prices and lack of UK financial safeguards.

Consumer protection and repayment risks drove the policy shift. Barclays warned crypto's price swings could leave users with unmanageable debt, noting digital assets fall outside Financial Ombudsman Service protections. The move aligns with UK regulatory discussions about restricting Leveraged crypto investments.

This restriction emerges paradoxically alongside Barclays' $131 million investment in BlackRock's crypto-related funds. The dichotomy highlights institutional caution toward retail crypto exposure despite growing corporate participation in digital asset markets.