Barclays Restricts Credit Card Crypto Purchases Amid UK Regulatory Pressure

Barclays has joined a growing cohort of UK banks tightening restrictions on cryptocurrency transactions. Effective June 27, 2025, the bank will block all crypto purchases made with Barclaycards, citing concerns over consumer debt risks and lack of regulatory protections for digital assets.

The move follows heightened scrutiny from the Financial Conduct Authority, which recently proposed a blanket ban on credit-facilitated crypto purchases. UK regulators warn of unsustainable debt exposure if investors rely on volatile crypto valuations to repay borrowed funds.

Market data reveals a troubling trend: 14% of UK crypto investors now use credit facilities for purchases, more than double the 2022 figure. This shift comes despite Bitcoin's 60% year-to-date decline and Ethereum's 55% drop from all-time highs.