Barclays Bank, a UK banking giant, has announced that it will block all cryptocurrency transactions using its bank cards starting June 27, 2025. The decision, driven by concerns over crypto’s wild price swings, aims to shield customers from debts they can not repay. This shift has sparked debate, as the UK pushes to become a crypto hub, leaving investors scrambling for alternatives.
Barclays Offers Alternatives
Barclays’ decision stems from the crypto market’s volatility, where sharp price drops can leave cardholders with unaffordable debt. The bank also notes that crypto purchases lack protection from the Financial Ombudsman Service or the Financial Services Compensation Scheme, increasing risks for consumers. This aligns with the UK Financial Conduct Authority’s (FCA) efforts to curb fraud in crypto investments.
To help customers, Barclays recommends using FCA-registered exchanges like Kraken or Gemini for crypto purchases made via bank transfers or debit card payments, provided they meet the necessary compliance standards. The bank encourages customers to visit the FCA’s website to learn about the risks associated with cryptocurrencies, thereby ensuring safer investment choices.
Despite the ban, Barclays’ own $131 million investment in Bitcoin ETFs has raised eyebrows, suggesting a potentially selective approach to crypto engagement.
Others Favor Crypto Transactions
While Barclays tightens its grip, some banks globally remain crypto-friendly. For example, some major U.S banks are venturing into cryptocurrency to create a stablecoin pegged to the U.S. dollar, to rival digital asset platforms.
Additionally, eight major South Korean banks have partnered with the Open Blockchain and DID Association and the Financial Settlement Institute to develop a Korean won-backed stablecoin. Japan’s top three banks—Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Banking Corporation (SMBC), and Mizuho Financial Group—also collaborated to launch a stablecoin platform for international settlements.
These varied policies reflect a broader tension between traditional banking and the growing crypto market, with challenger banks often leading the charge in supporting digital assets.
Barclays’ ban highlights the tug-of-war between safeguarding customers and embracing crypto’s rise. As the UK aims to lead in digital finance, this move is likely to push investors toward innovative platforms, such as decentralized exchanges, which can be accessed via digital wallets.
