Barclays Blocks Credit Card Crypto Purchases
Starting June 27, Barclays will halt cryptocurrency purchases via credit cards. This change responds to fears of debt issues caused by significant price fluctuations and no consumer protections if a transaction fails. The bank highlights that such assets aren't protected by the Financial Ombudsman Service or the Financial Services Compensation Scheme. Other UK banks have made similar moves; JPMorgan Chase’s UK branch banned card-based crypto buys in 2023 following a rise in scams, with TBC Bank and Lloyds Bank also ceasing such operations. Despite banks' caution, payment networks like Mastercard are expanding crypto access. They teamed with Chainlink to allow direct onchain fiat-to-token exchanges. Disclaimer: The Block is an independent media outlet providing news and data, partially owned by Foresight Ventures, which also invests in crypto companies.
FAQ
❓ Why is Barclays blocking crypto purchases?
Barclays cites unmanageable debt risks from volatile crypto prices and lack of consumer protection.
❓ Are other banks doing the same?
Yes, other UK banks like JPMorgan Chase and Lloyds have taken similar measures against crypto purchases with credit cards.
❓ How does Mastercard's involvement affect crypto transactions?
Mastercard is broadening crypto access, enabling fiat-to-token swaps directly onchain, contrasting with bank restrictions.