Barclay Terminates Crypto Purchases, Citing Concerns For Customers

Barclays, one of the UK’s largest banks has unaminously made the decision to exit the crypto landscape in order to protect its customers.

This comes after Barclay's announcement to terminating all crypto purchases made with its credit cards starting on June 27, 2025.

Barclay has listed concerns over market volatility and the risk that customers could be saddled with unmanageable debt if crypto prices plummet.

The bank also highlighted the lack of regulatory safeguards, noting that crypto assets are not covered by the Financial Ombudsman Service or the Financial Services Compensation Scheme—leaving consumers with little recourse if something goes wrong.

Barclays’ follows the route of some of the world's largest global banks, including JPMorgan, Bank of America, which have either fully blocked or severely restricted crypto-related transactions in recent years.

While some might point out that Barclay might be taking the short-end of the stick as they might be losing out possibly millions or even billions of dollars, but Barclay is determined to bite the bullet if it protects the interest of their customers.

The policy is a calculated risk assessment: by halting credit card access to crypto, Barclays aims to shield customers from the dangers of using borrowed funds to invest in highly volatile assets.

“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.”

This rationale is echoed by regulators, with the UK’s Financial Conduct Authority (FCA) repeatedly warning consumers about the risks of investing in unregulated crypto markets.

Customers Can Make Their Own Decisions!

But critics are arguing that Barclay doesn't have the authority to unanimously make the decision for their customers.

The Payments Association, a leading industry group, has historically opposed blanket bans on crypto purchases, arguing that regulators have a very warped perception of crypto, often unfairly equating it with gambling.

In 2023, the organization challenged a proposed UK crackdown on credit card crypto purchases, with policy head Riccardo Tordera-Ricchi stating that consumers should be trusted to make informed decisions within their existing credit limits.

Despite this, the regulatory and banking sectors remain cautious, especially in the wake of high-profile crypto scandals and market crashes.

With Barclays exiting the crypto space via credit rails, UK users are left with fewer mainstream onramps. Some banks, like RBS, remain comparatively open to crypto activity, while others, such as NatWest and Metro Bank, have tightened restrictions or blocked transactions outright.

Customers seeking alternatives may need to shift to debit payments, use third-party payment methods like Apple Pay or Google Pay, or rely on platforms such as MoonPay that offer non-custodial services and broader acceptance rates.

Institutional Embrace, Retail Restrictions

Barclays’ stance on retail crypto contrasts sharply with its institutional engagement. The bank has actively explored blockchain technology for years, participating in private, permissioned blockchain pilots and, more recently, in a landmark institutional trade using JPMorgan’s Onyx tokenized collateral network alongside BlackRock.

This duality highlights the bank’s differentiated approach: while it is cautious about retail crypto exposure, it recognizes the potential of blockchain for institutional finance.

Barclays’ move is part of a broader regulatory push to protect consumers from the risks of speculative crypto investments.

The FCA has proposed further restrictions, including limiting the use of credit cards for crypto purchases and tightening controls on crypto lending products.

The impact on the crypto market is likely to be felt most acutely by retail investors, who may see reduced access to credit-fueled speculative flows.

At the same time, the ban could prompt a shift in consumer behavior, with more users turning to alternative payment methods or decentralized platforms that bypass traditional banking restrictions.