tl;dr
Barclays, a major UK financial institution, will block all cryptocurrency transactions on its payment cards starting June 27, 2025, citing the volatile nature of crypto prices and lack of insurance protection. The bank warns that customers could incur debts they cannot repay and notes that crypto pu...
Barclays, a leading UK financial institution, announced it will block all cryptocurrency transactions on its bank cards starting June 27, 2025. The move stems from concerns about the volatility of cryptocurrency prices and the lack of consumer protections. Barclays warns that customers could incur unmanageable debts following sudden crypto price drops, and notes that crypto purchases are not protected under the Financial Ombudsman Service or the Financial Services Compensation Scheme.
Interestingly, despite this ban on crypto transactions using its cards, Barclays holds a substantial investment in BlackRock's Bitcoin exchange-traded fund (ETF), IBIT. As of February, Barclays disclosed owning 2,473,064 shares of IBIT, valued at nearly $137 million. IBIT is currently the largest bitcoin-based ETF by trading volume and has shown recent gains, trading at $60.98 at the time of reporting, marking a 1.5% increase over 24 hours.
This dual approach highlights the complex stance Barclays takes on cryptocurrencies: restricting direct consumer crypto purchases due to risk concerns while maintaining significant institutional exposure through strategic investments in cryptocurrency funds. The bank’s position reflects broader debates in the financial industry about balancing innovation with consumer safety.
With Barclays blocking crypto card transactions, investors and consumers alike may consider how such moves influence their crypto exposure strategies. Will more traditional banks follow suit, or will wider regulatory frameworks emerge to address these concerns? The evolving relationship between banks and cryptocurrencies continues to be a space worth watching closely.