Barclays (Barc)One of the UK’s largest banks, it said it would stop customers using their credit cards to buy cryptocurrency by the end of the week.
The London -based company will block cryptocurrency transactions on payments with a barclaycard brand starting June 27, It said on a website page Published Wednesday. The page noted “some risks” when buying crypto.
“We do this because the fall in the price of crypto assets can lead to customers to find themselves in debt that they cannot afford,” the read page. “There is also no protection for crypto assets if there is something wrong with a purchase, as they are not covered by the Ombudsman’s financial service and service compensation procedure.”
FSCS pays up to 85,000 pounds ($ 116,000) to customers who have lost money if an institution covered the program failed.
While banks preventing customers using their credit cards to buy crypto are nothing new, it’s unclear why Barclays put this restriction in the area today. Rival institutions Nationwide and HSBC do a similar thing Returned in March 2023 at a time when the wounds from the fall of Multiple Crypto companies in 2022 Still fresh.
The bank did not give further comment on this matter when coinDESK was in contact.
Right (June 25, 16:37 UTC): Correct acronym for Financial Services Compensation Scheme in fourth paragraphs.
