Barclays to Block Crypto Transactions on Credit Cards from June 27
Barclays will block crypto transactions on its Barclaycard credit cards starting Friday due to concerns over cryptocurrency volatility and regulatory gaps. The bank cited risks of customers incurring unmanageable debt from falling crypto prices and noted that crypto purchases lack protections from the Financial Ombudsman Service and Financial Services Compensation Scheme. Barclays has permitted crypto transactions since 2018 and has over five million credit card accounts in the UK. This decision aligns with ongoing discussions in the UK regarding potential restrictions on using credit for crypto purchases, as highlighted by a recent FCA paper. The Payments Association opposed such restrictions, arguing they unfairly liken crypto to gambling and advocating for consumer empowerment within credit limits. Additionally, purchasing crypto with credit cards may incur higher fees and interest rates, as some issuers classify these transactions as cash advances.
