Barclays Bans Crypto Credit Card Purchases Beginning Friday

The bank’s decision comes in response to what it describes as the heightened financial risks associated with digital assets. In a statement posted to its website, Barclays said, “We’re doing this because a fall in the price of crypto assets could lead to customers finding themselves in debt they can’t afford to repay. There’s also no protection for crypto assets if something goes wrong with a purchase.”

Barclays emphasized that crypto purchases made with credit cards fall outside the remit of key UK consumer protection frameworks, including the Financial Ombudsman Service and the Financial Services Compensation Scheme (FSCS). That means if a customer loses money due to fraud, technical failure, or market collapse, they may have no recourse to recover their funds.

The move aligns with a broader trend among UK financial institutions that are growing more cautious about their exposure to cryptocurrencies. Over the past 18 months, major British banks including HSBC, NatWest, Santander, Nationwide, and Virgin Money have either limited or outright banned credit card-based crypto transactions. Many cite similar concerns: rampant scams, volatile prices, and insufficient investor safeguards.

The announcement follows months of intensified regulatory attention in the UK. In May 2025, the Financial Conduct Authority (FCA) published a discussion paper soliciting feedback on whether firms should be allowed to offer credit for crypto purchases at all. The regulator warned that “retail customers using borrowed funds to invest in highly volatile and speculative cryptoassets poses a significant risk to financial well-being.”

Although Barclays has not commented on whether the FCA’s paper directly influenced the bank’s latest policy, the timing of the announcement suggests alignment with evolving regulatory expectations.

Consumer advocacy groups have generally supported the move, viewing it as a step toward reducing the risks of over-leveraged investing. They argue that using credit to buy highly volatile assets like cryptocurrencies can expose consumers, especially those already in debt, to significant financial harm.

However, crypto industry players and fintech advocates have voiced concerns. The UK-based Payments Association argued that blanket bans like Barclays’ risk undermining financial inclusion and consumer autonomy. In a recent public statement, the group said, “Restricting credit for crypto purchases implies these products are inherently harmful, when in fact they are part of a broader evolution in financial services. Consumers should be allowed to make their own decisions within responsible limits.”

Barclays customers can continue to use debit cards and bank transfers to purchase digital assets through FCA-regulated platforms. However, the bank has imposed restrictions on transactions with certain cryptocurrency exchanges deemed high-risk or unregulated, such as Binance, following regulatory advisories. These measures have been implemented on a case-by-case basis since 2021.

This latest measure is part of a global trend in which traditional financial institutions are taking a more assertive stance on how customers interact with crypto markets. In the United States, JPMorgan Chase and Bank of America have maintained strict limitations on crypto-related credit card usage, citing fraud and compliance risks. Similarly, Canada’s Scotiabank and TD Bank blocked credit card transactions with major crypto exchanges as early as 2018.

Barclays’ decision may also reflect internal pressures to comply with upcoming consumer duty regulations that come into full effect later this year. These rules will require financial firms to deliver better outcomes for retail clients, including enhanced transparency and more proactive risk management.

The impact on Barclays’ customers will likely be limited in the short term, as crypto purchases via credit cards represent only a small fraction of overall trading volume. However, the symbolic value of the move is significant. Barclays was one of the first UK banks to collaborate with fintechs and blockchain startups during the early days of crypto experimentation. The new ban signals a definitive shift away from that early openness and toward more conservative risk management principles.

For crypto investors, the announcement is a reminder to carefully assess how they fund their activities. While debit card transactions and bank transfers remain permissible, the use of borrowed funds to speculate on high-risk assets like Bitcoin or Ethereum is increasingly frowned upon, not just by regulators, but by the banks themselves.

As the FCA continues to evaluate whether more formal restrictions should be introduced, Barclays' decision could serve as a bellwether for future policies across the sector. With many retail investors still reeling from the 2022 and 2023 crypto market downturns, regulators and banks appear aligned in prioritizing financial safety over speculative freedom.

For now, Barclays customers who wish to buy cryptocurrencies will need to do so using their own funds, not borrowed ones. And with the regulatory environment still evolving, more banks may soon follow suit.