Barclays has announced it will block cryptocurrency purchases made with Barclaycards starting 27 June 2025, joining other major UK banks in limiting customer exposure to crypto-related debt. The decision highlights increasing caution in the UK banking sector toward the volatile and largely unregulated world of digital assets.
In an update posted to its Barclaycard website, the bank said, “We recognise there are certain risks with purchasing crypto-currencies.” Barclays emphasized that crypto-assets are not protected under the UK’s Financial Services Compensation Scheme (FSCS), and significant drops in value could lead customers into debt if purchases are made on credit.
This move places Barclays alongside other leading institutions, including Chase UK, HSBC, and Nationwide, which all implemented crypto transaction restrictions in 2023. Chase UK, for example, has fully banned transactions to crypto exchanges, while Nationwide set a £5,000 cap on debit card crypto purchases.
FCA Raises Red Flags Over Crypto and Credit Use
Barclays’ new policy aligns with concerns raised by the UK Financial Conduct Authority (FCA). In a recent discussion paper, the FCA revealed that 14% of UK crypto investors used credit cards or other borrowed funds to invest in crypto as of August 2024 — up from 6% in 2022.
The FCA warned that reliance on credit to buy digital assets could result in “unsustainable debt,” especially if investors are counting on volatile crypto prices rising to repay borrowed money.
Industry Experts Slam Restrictions on Personal Spending
Glen Goodman, crypto analyst and author, supported Barclays’ right to manage lending risk but criticized banks that block users from spending their own money on crypto platforms. “They need to manage their own risk as they see fit,” he said, “but it really annoys me when UK banks refuse to let people send their own money to a crypto account.”
Banks such as Barclays and Lloyds have blocked transfers to exchanges like Binance for years. Meanwhile, TSB and Santander implemented blanket bans on all crypto purchases in 2021 and 2022.
Crypto Credit Use Remains Controversial
Despite opposition to restrictions, Goodman acknowledged the dangers of using debt for crypto trading, warning that many novice traders go bankrupt when strategies fail. “Experienced crypto traders often borrow money to trade,” he said, “but it takes real skill to manage that risk effectively.”
As the crypto-credit crackdown intensifies, industry stakeholders and regulators continue to debate the balance between financial freedom and consumer protection.
