Barclaycard to Block Crypto Purchases Using Credit Cards – Coincu

Barclaycard, a major credit card brand under Barclays Bank, will stop allowing its credit cards for cryptocurrency transactions starting June 27, 2025.

The decision highlights consumer protection against crypto volatility, generating controversy over its economic effects.

Barclaycard’s Crypto Ban Aims to Reduce Consumer Debt Risks

Barclaycard’s decision to halt crypto transactions using its credit cards aims to protect consumers from the potential financial risks associated with cryptocurrency markets. Price fluctuations in crypto assets pose a risk to those unable to repay debts, driving this policy change. Barclaycard communicated that crypto assets lack the backing of the Financial Ombudsman Service and the Financial Services Compensation Scheme.

The move signifies a shift in how financial institutions are handling crypto-related activities. A blanket ban blocks all card transactions connected to cryptocurrencies, affecting notable assets like Bitcoin and Ethereum. This action echoes similar restrictions by other financial entities to curb speculative investments.

Reaction across the industry varies. Riccardo Tordera-Ricchi of the Payments Association criticized the policy, stating, “We challenge the proposed ban on credit card purchases for crypto, as it unfairly equates legitimate investment activity with gambling … We believe consumers should be trusted to make informed decisions within their existing credit limits.” Consumer autonomy and investment freedom are key themes in the backlash, with critics advocating for informed decision-making within credit limits.

Cryptocurrency Market Faces Change Amid Institutional Policies

Did you know? Barclaycard’s upcoming ban reflects historical steps by banks to curb speculative investments, aligning with FCA’s regulatory guidance amid prior market fluctuations.

Bitcoin (BTC) is valued at $107,187.82 with a market cap of $2.13 trillion. Over 24 hours, trading volume decreased by 31.66%. Recent performance shows a 23.33% rise over 90 days, as per CoinMarketCap data. The circulating supply stands at 19,883,246 BTC.

From a financial perspective, the Coincu research team indicates that strict credit policies may lead to a temporary retail trading downturn but likely spur stable regulatory oversight. These dynamics could further influence technological and market adaptations in the cryptocurrency sphere. For detailed guidance on how Barclaycard’s policies affect cryptocurrency usage with credit cards, visit Barclaycard guidance.