Barclays has decided to ban cryptocurrency purchases using its credit card. The ban will be enforced from June 27 onwards. The move is a stark opposition to other platforms that have made crypto purchases easier for customers. The ban could lead to a dip in retail investments in the crypto sector.
Why Has Barclays Decided To Ban Cryptocurrency Purchases With Credit Cards?
The crypto sector is plagued with risks. The budding asset class has seen incredible adoption over the last few years. Despite the incremental growth, the industry has a history of aggressive volatility.
According to the bank’s website, “From 27 June 2025, we’ll block crypto-transactions made with a Barclaycard because we recognise there are certain risks with purchasing cryptocurrencies.”
The ban was first mentioned earlier this year in February in regards to Barclays’ US operations. Paul Wilmore, managing director at Barclaycard, had stated, “We are making the decision that we will likely not allow cryptocurrency purchases on the card.“
The decision to halt cryptocurrency purchases with their credit cards seems to have spread to the United Kingdom.
Also Read: Fed Chair Powell: Banks are Free to Engage in Crypto Activities
MasterCard recently partnered with Chainlink to allow cardholders to buy cryptocurrencies directly onchain. Barclays’ decision seems to be on the other side of the court.
Will The Sector Suffer?
Halting cryptocurrency purchases with a credit card could have negative reverberations for the sector. We could see a dip in retail investments over the next few months.
The crypto market is only just recovering from its recent dip. Global geopolitical tensions and trade wars have led to a substantial rise in uncertainty. The Federal Reserve’s decision to keep interest rates unchanged has also led to retail investors taking a back seat. Lower interest rates would have made borrowing easier. Such a scenario often leads to investors taking more risks.