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Barclays is about to cut off a major channel for crypto purchases. Starting June 27, customers will not be able to use Barclaycards for any digital asset transactions. The bank says it is doing this to reduce risk exposure for users, citing concerns about the volatile nature of cryptocurrencies and the lack of consumer protections.
Good to know
The ban applies to all types of cryptocurrency purchases made with Barclaycards. In its official announcement, the bank explained that a sudden drop in asset prices could push customers into debt they cannot manage. More importantly, there is no safety net for crypto buyers—these assets are not covered by the Financial Ombudsman Service or the Financial Services Compensation Scheme in the UK.
Even as Barclays restricts retail card users from buying digital assets, the bank itself has invested heavily in the crypto space through regulated financial products. In February, Barclays disclosed to the U.S. Securities and Exchange Commission that it held 2,473,064 shares of BlackRock’s Bitcoin ETF, known as IBIT. That investment was worth around $137 million at the time.
IBIT became the most traded Bitcoin ETF after its launch in January 2024. Despite the new ban on direct crypto purchases, Barclays’ stake in IBIT shows it still sees value in Bitcoin—just not for everyday cardholders.
The contrast between Barclays’ consumer policy and its investment strategy is drawing attention. While individuals lose access to crypto purchases via their bank cards, the institution itself continues to hold a position in the asset through a highly regulated channel.