Why is the UK’s Largest Bank Banning Crypto Purchases?

Barclays, one of the largest banks in the UK, is going to ban its customers from purchasing crypto with their debit cards. This restriction is set to take effect by the end of the week, citing consumer risk in crypto investment.

The firm disclosed this policy with a small announcement, and many users learned of it via social media. There are a lot of unanswered questions regarding this policy shift.

Why is Barclays Turning on Crypto?

Over the last few months, Britain has tried to attract the crypto industry, with major regulators advocating for looser investment restrictions. This more positive attitude from the government makes Barclays’ turn on crypto all the more surprising.

The bank announced this decision with little fanfare, only providing a brief statement not posted on social media:

“It’s not possible to make cryptocurrency transactions using a Barclaycard. From 27 June 2025, we’ll block crypto transactions made with a Barclaycard because we recognize there are certain risks with purchasing cryptocurrencies. A fall in the price of cryptoassets could lead to customers finding themselves in debt they can’t afford to repay,” it claimed.

This sudden reversal drew anger from the community, especially because the bank invested in Bitcoin ETFs. Over the past few years, Barclays has shown interest in crypto, adopting blockchain technology and investing in the industry.

Despite making some of these moves over three years ago, the firm is now taking a flatly hostile tone.

Barclays’ position is even more bizarre because debit and credit card access to crypto is growing worldwide. Several of the US’ largest banks are adopting crypto after friendlier regulations, for one.

Just yesterday, one of the world’s biggest credit card providers gave its users direct access to DEXs. Barclays, it seems, is on the wrong side of history.

If nothing else, Barclays’ position on crypto seems like a severe overcorrection. The British government is taking special care to enforce consumer protections with its new policy, but this policy is solidly pro-crypto.

Barclays even encouraged its users to visit the FCA’s website to learn about investment risks. The FCA, however, is pushing for friendlier policies.

Thanks to Barclays’ short statement, it’s unclear how the bank plans to interact with the growing industry in the future. There’s a lot of frustration and unanswered questions right now.