Barclays will begin blocking crypto transactions made through its Barclaycard credit cards starting today (Friday June 27), citing risks associated with cryptocurrency volatility.
According to the bank, the decision was based on concerns over volatile token prices and the lack of regulatory guardrails for investors.
We’re doing this because a fall in the price of crypto assets could lead to customers finding themselves in debt they can’t afford to repay.
There’s also no protection for crypto assets if something goes wrong with a purchase, as they’re not covered by the Financial Ombudsman Service and Financial Services Compensation Scheme.
A Barclays spokesperson declined to further comment on the decision.
Barclays has allowed crypto transactions via its credit cards since at least 2018, enabling customers to purchase digital assets on cryptocurrency exchanges.
