Barclays Halts Cryptocurrency Transactions Amid Rising Financial Risks
Barclays Bank Bans Cryptocurrency Transactions Amid Rising Concerns
Barclays Implements Ban on Crypto Transactions
On June 26, 2025, Barclays Bank, a leading financial institution in the United Kingdom, announced a significant policy change that will prohibit all cryptocurrency transactions made through its bank cards, including Barclaycard credit cards. This ban will take effect on June 27, 2025, and is driven by growing apprehensions regarding the financial risks associated with the unpredictable nature of digital currencies.
Reasons Behind the Decision
In an official statement, Barclays expressed its concerns about the potential hazards linked to cryptocurrency investments. The bank warned that a drop in cryptocurrency values could lead to substantial debts for customers. “Starting June 27, 2025, we will prevent crypto-related transactions using a Barclaycard, as we acknowledge the risks involved in purchasing cryptocurrencies,” the statement read.
Lack of Regulatory Protections
Barclays emphasized the absence of regulatory safeguards for cryptocurrency transactions, pointing out that these digital assets are not protected by the Financial Ombudsman Service or the Financial Services Compensation Scheme. This lack of consumer protection, coupled with the inherent volatility of cryptocurrencies, poses significant risks, especially for individuals using credit to invest in these assets.
Broader Trends in the Financial Sector
This decision by Barclays is part of a larger trend among traditional banks distancing themselves from cryptocurrencies due to escalating concerns about scams, market manipulation, and consumer safety. The UK’s Financial Conduct Authority (FCA) has repeatedly cautioned consumers about the dangers of investing in unregulated cryptocurrency markets.
Guidance for Customers
In its announcement, Barclays encouraged customers to visit the FCA’s website for more information, suggesting that they familiarize themselves with the fundamentals of cryptocurrency to better understand the associated risks. This move follows a pattern observed among other UK banks, which are increasingly restricting consumer access to speculative digital assets.
Future Regulatory Measures
Additionally, the Bank of England is considering further measures to limit UK banks’ exposure to cryptocurrencies by 2026. At a recent event in London, executive director David Bailey indicated that upcoming regulations would likely be more stringent, particularly concerning assets characterized by high price volatility that could lead to total investment loss.
