Barclays says no to crypto transactions using credit cards

Another day, another bank turning its back on crypto. Barclays’ card ban underscores the growing tension between digital assets and traditional finance.

According to a notice on its official website, Barclays will start blocking all cryptocurrency purchases made with its credit cards beginning June 27, 2025. The UK banking giant cited concerns over market volatility and consumer debt risks, arguing that sudden price drops could leave cardholders unable to repay borrowed funds.

The policy also highlights the lack of regulatory safeguards. Unlike traditional investments, crypto purchases aren’t covered by the Financial Ombudsman Service or the Financial Services Compensation Scheme, Barclays said in the notice.

Barclays’ quiet crackdown on crypto access

Barclays’ decision to block crypto credit card transactions is the latest move in a years-long tug-of-war between UK banks and digital assets. By halting credit card access to crypto, the bank is making a calculated risk assessment that prioritizes customer debt exposure over market participation.

While the policy might feel abrupt, it’s consistent with Barclays’ longstanding skepticism toward crypto. Back in 2021, a longtime customer vented on Reddit after the bank froze their account for attempting a transfer to Crypto.com.

Despite passing security checks, the user faced a 15-day review, with Barclays citing “protection” as the reason, a move that sparked backlash for its selective enforcement (gambling transactions, for instance, faced no such scrutiny).

This isn’t an isolated stance. Barclays joins a cohort of major financial institutions, including JPMorgan, Bank of America, Chase UK, and Starling, that have either fully blocked or tightly constrained crypto-related transactions. Industry reaction has been split.

The Payments Association has historically opposed blanket crypto bans, arguing they unfairly equate digital assets with gambling. In 2023, the group challenged a proposed UK crackdown on credit card crypto purchases, with policy head Riccardo Tordera-Ricchi stating consumers should be trusted to “make informed decisions within their existing credit limits.”

Which options are customers left with?

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

Users looking for 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.

Meanwhile, Barclays’ restriction contrasts with its own exploration of blockchain for institutional use. In 2017, Barclays’ CTO discussed private, permissioned blockchain pilots aimed at streamlining trade processes.

More recently, it took part in a landmark institutional trade using JPMorgan’s Onyx tokenized collateral network alongside BlackRock, showcasing its engagement with blockchain frameworks.