Barclays to Block Credit-Card Crypto Purchases Amid Debt Risk Concerns

Barclays PLC will prohibit customers from using its credit cards to purchase cryptocurrencies starting June 27, citing concerns over volatile asset prices and lack of consumer protections. The London-based bank warned that sudden crypto price drops could leave cardholders with unaffordable debt.

Unlike traditional financial products, cryptocurrency purchases lack coverage under the U.K.'s Financial Ombudsman Service and Financial Services Compensation Scheme (FSCS), which safeguards deposits up to £85,000. The move follows similar restrictions imposed by Nationwide and HSBC in early 2023 during crypto market turmoil.

Barclays' decision underscores persistent institutional skepticism toward digital asset adoption, despite growing retail interest. The bank declined to specify whether recent market developments influenced its timing.