Barclays has joined the list of UK banks tightening regulations on cryptocurrency trading by blocking customers from purchasing cryptocurrency using their Barclaycard credit cards since June 27, 2025.
Reasons and context of regulation
Barclays explained that this move aims to protect customers from the risk of debt due to the decline in cryptocurrency prices, while noting that digital assets are not insured by existing banking and financial protection programs.
The decision of #Barclays was made after reports indicated that the UK's financial regulatory body, the Financial Conduct Authority (FCA), was seeking to impose a total ban on all credit purchases of cryptocurrency. The FCA expressed concerns that consumers purchasing crypto assets with credit could incur unsustainable debt, especially if the value of the asset decreases and they rely on it to repay the debt. A YouGov survey in August 2024 showed that 14% of cryptocurrency investors in the UK had used credit cards or credit forms to buy crypto, up from 6% in August 2022.
Similar moves from other banks and controversies
Barclays is not the first bank to take this step. Chase UK, HSBC, and Nationwide also implemented similar measures in 2023. Nationwide set a spending limit of £5,000 (approximately $6,860) for crypto payments made with debit cards, while Chase UK even banned all transactions to cryptocurrency exchanges and services, whether by credit or debit card.
Some cryptocurrency experts criticize these actions as "overstepping the mark." Analyst Glen Goodman said that he could sympathize with the bank's restriction on using credit for crypto, but disagreed with them preventing customers from using their own money. He said, "If Barclaycard doesn't want to lend money to crypto traders, that's their right... But what really bothers me is when UK banks refuse to allow people to send their own money from their bank accounts to a crypto trading account."
Some other UK banks like Barclays and Lloyds have blocked all forms of money transfer to Binance for several years, while TSB and Santander banned all crypto purchases respectively from 2021 and 2022. Although considering this an overreach, Goodman still warns about using debt to trade cryptocurrencies due to the associated risks. #anhbacong