article 💳 Barclays Bans Crypto Purchases via Credit Cards Starting Last Friday – What It Means for UK Users

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Why Is Barclays Blocking Crypto Transactions?

According to official information from Barclays’ website, the bank is concerned about the extreme price volatility of cryptocurrencies and the lack of regulatory protection for users. In a public statement, Barclays explained:

When asked for further comments on the matter, a Barclays representative declined to elaborate.

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A History of Crypto-Friendly Policies – Now Reversed

Since 2018, Barclays has permitted crypto transactions through its credit cards, allowing users to buy digital currencies on popular exchanges. As of last year, Barclays was managing over five million credit card accounts in the UK alone.

But this decision marks a complete reversal, and it aligns with a broader national conversation around the risks of using credit for speculative financial activities.

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UK Financial Watchdog Steps In

On May 2nd, the Financial Conduct Authority (FCA) released a discussion paper, asking whether restrictions on crypto purchases using credit should be enforced more broadly:

This paper has intensified the ongoing regulatory debate, especially as banks start taking individual action ahead of government mandates.

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Payments Association Pushes Back Against FCA’s Suggestion

The Payments Association, a London-based industry group, has voiced strong opposition to these restrictions. In a formal response to the FCA, they argued that such limitations may create unfair comparisons between cryptocurrency investments and gambling:

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Credit Card Crypto Transactions = Higher Fees?

It’s worth noting that purchasing cryptocurrency with a credit card often involves hidden costs. As reported by Bankrate, many credit card companies classify such transactions as cash advances, resulting in:

• Higher interest rates

• Immediate transaction fees

• No grace period for repayment

These financial penalties only add to the risk profile Barclays and regulators are concerned about.

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Final Thoughts

Barclays’ decision is a major turning point in the UK’s evolving stance on crypto accessibility. While some see it as a necessary step to protect consumers from risky debt, others argue it’s a step backward for financial freedom.

This development could be a precursor to broader restrictions, especially if the FCA decides to move forward with tighter regulations in the coming months.