Starting 27 June, UK bank Barclays is blocking all attempts to buy crypto via its Barclaycard credit cards, citing “certain risks with purchasing cryptocurrencies”.
Barclays quietly announced the move to block crypto transactions on its Barclaycard website, on an FAQ page, shortly before it began enforcing the ban. On the page, it says it made the decision because falls in the prices of crypto assets “could lead to customers finding themselves in debt they can’t afford to repay”.
It says that the lack of consumer protections for cryptoassets is a key driver behind the decision, as these transactions are not covered by the Financial Ombudsman Service or the Financial Services Compensation Scheme.
While other major retail banks, including HSBC, have implemented similar measures in the past, Barclays’ move comes years after, posing questions as to why it has decided to draw its line in the sand now.
The decision comes shortly after the FCA published a discussion paper seeking views on cryptoassets in the UK, including whether more restrictions should be applied to people using credit to purchase crypto, after it recognised an increase in this activity.
To find out what different industry participants think about the decision, whether it’s a sensible move to increase protections or infringes on consumer choice, we reached out to find out what they have to say.
Crypto risks are real
“Barclays isn’t acting alone, it’s moving in line with other major UK issuers,” explains Arthur Azizov, founder and investor at B2 Ventures. “Four of the top five now restrict crypto purchases on credit cards, and with the FCA signalling tighter rules ahead, I’d even expect more banks to follow suit.
“The risks are real. Crypto is volatile – Bitcoin is down 25 per cent this year – and credit cards often carry APRs over 30 per cent. That combination can lead to serious financial harm, especially for retail investors. The FCA estimates that nearly 70 per cent of them lose money trading crypto.
“Fraud is another factor. QR-code scams and fake investment ads continue to circulate, and when something goes wrong, the bank often bears the cost of chargebacks. For issuers, this is directly about operational risk.
“That said, I don’t think access to crypto should be cut off entirely. People can still buy crypto with their own money using debit cards. And new solutions are emerging — like open banking tools that enable real-time affordability checks before funds are pulled. That’s a smarter way forward.
“Personally, I see this as a temporary but necessary step. The goal should be smarter infrastructure, not ‘paternalism’.” But until we get there, limiting credit exposure is a sensible move.”
Education first
“With the regulatory wheels now firmly in motion, crypto has arrived in the mainstream and is quickly becoming part of the institutional fabric,” adds Nick Jones, founder and CEO of digital-assets-as-a-service platform Zumo. “But there is also a need to find the right balance for retail investors, ensuring they can benefit from the new opportunities on offer without compromising their security.
“While I understand Barclays’ rationale, I’d question whether a blanket ban on accessing crypto via a credit card is truly in the best interests of consumers, given the important role choice should play in the evolving financial services arena.
“A better approach could be to take the time to educate its customers on the risks involved so they can then make a more informed decision. This sits within the spirit of the Consumer Duty rules, without restricting consumer freedom.”
Fei Chen, founder and CEO at AI-native investment platform, Intellectia AI, also offers a similar perspective, stressing the importance of education.
“Although I can see that a lot of users believe they ought to be able to choose their own investments, I believe it’s the role of financial institutions to provide consumers with some protection from excessive risk, particularly in the case of highly risky investments such as crypto.
“Still, a blanket ban may not be ideal. Maybe presenting consumers with alternatives, such as educational materials or limits on credit card crypto purchases, would enable them to make better choices while still protecting their financial health. At the end of the day, consumer protection should be combined with access to new markets.”
‘Not overreach, it’s overdue’
While Noor Al-Naseri, an independent fintech and crypto compliance advisor, agrees that consumer education needs to improve, she argues that this is a reason to back Barclays’ decision.
“Barclays’ decision to block crypto purchases via credit cards is not overreach, it’s overdue. As a Fellow of the International Compliance Association, I’ve seen the consequences when consumer protection lags behind financial innovation. Crypto remains high-risk, and pairing it with unsecured debt instruments like credit cards amplifies that risk exponentially.
“This move isn’t about controlling consumer choice, it’s about responsible risk mitigation. Financial institutions have a duty not just to their customers, but to the stability of the broader system. With mounting regulatory scrutiny and the FCA’s own warnings around crypto promotions, Barclays is choosing prudence over popularity.
“Should consumers have autonomy? Yes. But autonomy without safeguards leads to exploitation. We’ve seen it in payday lending, speculative investing, and now again in crypto.
“Credit cards were never meant to be on-ramps for speculative assets. If the crypto industry wants mainstream adoption, it needs to mature, starting with safer, debt-free access points and a higher standard of consumer education.”
At risk of treating customers unfairly?
William Garner, partner at global law firm Taylor Wessing, argues that the restriction could be too generic and unfair.
“Even though UK crypto businesses now have to register with the FCA, it is, to a certain extent, understandable that a bank should be able to choose the type of customer that it wishes to service. However, any restrictions on what goods or services cardholders can access seems to be very different and is a next level of restriction. The risk is that crypto customers may also be pushed away from traditional banks and card providers.
“This seems to be an attempt to prevent retail customers from spending their own money as they see fit. Consideration needs to be given to whether the general risk to customers of carrying out any crypto-related transactions is so great that it is fair to prevent all cardholders from entering into any crypto-related transactions at all?
“I think there is a significant risk that such a generic restriction is unfair and may not be considered to be ‘treating customers fairly’ for regulatory purposes. More targeted restrictions, such as restrictions relating to certain crypto firms, or even types of crypto firm or firms in certain jurisdictions, is less likely to be successfully challenged as unfair, but a blanket ban will likely be susceptible to challenge.”
We need better education, not just more red tape
Will Fenton, founder of Sterling Savvy, a financial comparison website and education hub, suggests that, while the ban is understandable, it doesn’t offer a genuine long-term solution.
“I understand why Barclays has made this move; it’s clearly about consumer protection, but I do think it risks sending the wrong message about crypto more broadly. Cryptocurrencies are volatile by nature, and when people buy into them with borrowed money, they risk not only losing their investment but also being hit by high interest rates, especially when such transactions are treated as cash advances. However, banning all credit card purchases doesn’t educate people; it just pushes them elsewhere, often to less regulated platforms or riskier methods.
“From a consumer protection standpoint, the move is understandable. Credit card debt is already a significant issue in the UK, and adding unregulated, uninsured assets into the mix doesn’t help. There’s also the matter of chargeback and fraud protection. Crypto purchases often lack the safety net of the Financial Ombudsman or the Financial Services Compensation Scheme, leaving consumers more vulnerable if things go wrong.
“That said, I do believe in financial autonomy, and I’m a big advocate for crypto done responsibly. People should have the right to make informed decisions about their money, and part of that is understanding how to navigate newer asset classes like crypto safely. Banks could play a much bigger role in helping customers do that, rather than simply blocking access.
“This decision might protect some in the short term, but longer term, we need smarter tools and better education, not just more red tape.
