Barclays to Block Credit-Card Crypto Purchases Amid Debt Risks

Barclays Plc will prohibit customers from using its credit cards to purchase cryptocurrencies starting June 27, citing concerns over potential debt accumulation and lack of consumer protections. The London-based bank warned that volatile crypto prices could leave borrowers unable to repay obligations, with digital assets falling outside UK financial compensation schemes.

The MOVE follows similar restrictions imposed by Nationwide and HSBC in March 2023, though Barclays' timing raises questions given current market stability. Unlike traditional investments, crypto purchases lack coverage under the Financial Ombudsman Service or Financial Services Compensation Scheme, which safeguards deposits up to £85,000.

"We're implementing this measure to protect customers from unforeseen liabilities," the bank stated, without elaborating on why the policy emerges now. The decision underscores ongoing tension between traditional finance and digital assets, even as institutional adoption grows elsewhere in the sector.