Barclays to Ban Crypto Purchases on Credit and Debit Cards from June 27
Barclays will block all cryptocurrency transactions on Barclaycard credit and debit cards from June 27 to protect customers from potential debt amid price volatility. The bank cited that crypto assets aren’t covered by the Financial Ombudsman Service or the Financial Services Compensation Scheme, increasing risk for cardholders unable to repay balances if prices fall. The decision, announced online without detailed press material, follows Barclays’ earlier investments in Bitcoin ETFs and blockchain research. Although several UK banks imposed similar limits after 2022 market collapses, Barclays has not explained the timing of this move. Competitors such as Nationwide and HSBC introduced comparable restrictions in March 2023 at the height of market turmoil. Traders should monitor shifts in retail on-ramps and payment flows as a major UK institution closes a key card-based channel.
Bearish
Blocking crypto purchases on credit and debit cards at a major UK bank reduces a key retail on-ramp. In the short term, decreased card-based inflows may lower spot buying pressure, weighing on Bitcoin prices. Longer term, traders could shift to alternative funding methods, but the loss of a convenient entry channel may dampen new retail participation. Similar moves by other banks in 2022 coincided with reduced volatility and trading volumes. Overall, the ban is likely to exert downward pressure on crypto demand and market stability.