UK-based bank Barclays has planned to block crypto transactions made through its credit cards starting this Friday as crypto volatility risks emerge.
The decision comes as a debate is unfolding in the UK on whether users should be allowed to buy crypto with credit cards or not, as volatile token prices and the lack of regulatory requirements for investors could lead to users finding themselves in debt.
Opinions from the FCA and the Payments Association
Barclays representatives cite that there is no protection for crypto assets if something goes wrong with a purchase because they’re not covered by the Financial Ombudsman Service and Financial Services Compensation Scheme.
The bank allowed crypto transactions via its Barclaycard credit cards, allowing users to purchase digital assets on crypto exchanges. In 2023, the company reported more than five million credit card accounts in the UK. However, Barclays’ crypto ban comes as the debate over crypto regulations continues, especially when it comes to purchasing crypto with credit.
On May 2nd 2025, the FCA published a paper seeking opinions on whether restrictions should be applied on crypto purchases with credit. The Payments Association dismissed the idea, arguing that a move like this could unfairly equate digital assets with high-risk activities such as gambling. Instead, users should be educated and supported to make informed decisions within predefined credit limits.
According to the Payments Association, controls are already in place for using credit cards to purchase high-risk assets, including crypto. In some instances, banks may block individuals from utilising cash to buy digital assets, making credit cards an alternative.
However, purchasing crypto with a credit card can carry added costs, according to Bankrate, as some issuers treat these transactions as cash advances to claim higher fees and interest rates.
