Bank Barclays will start based in the United Kingdom blocking Crypto transactions made by barclaycard credit cards beginning Friday, citing the risks associated with volatility of cryptocurrencies.
According to the bank’s website, the decision is based on PABAGU concerns of token prices and the lack of regulatory regulations for investors. “We do this because the fall in the price of crypto assets can lead customers to find themselves in debt that they can’t afford,” Barclays said, adding:
“There is also no protection for the property of the crypto if there is something wrong with the purchase, as they are not covered by the Ombudsman’s financial service and service compensation procedure.”
A Barclays spokesman refused to comment on the decision.
Barclays have allowed Crypto transactions through its credit cards from at least 2018, allowing customers to buy digital assets in cryptocurrency exchanges. In 2023, the company reported More than five million credit card accounts in the UK.
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Barclays ban on crypto purchases came amid a continuous UK debate when more restrictions were required to avoid buying credit residents.
On May 2, the UK financial authority authority (FCA) Na -Published A paper looking for views on whether “restrictions must be applied” to crypto purchases with credit.
Related: Former Barclays Exec to launch UK’s first regulated Crypto Bank in 2020
Payment Association responded to the FCA paper
The Payment Association, a London -based creature, Push Back against the idea of restricting crypto purchases through credit cards in a response to the FCA paper, contingent that such a move is unfairly equal to digital properties with high risk activities.
“Concerns arise about the proposed ban on using credit cards to buy crypto. This suggestion seems to be equivalent to crypto purchases with gambling; instead, consumers should empower to make knowledgeable options within predetermined credit limits.”
The Payment Association note that controls are already for use of credit cards to buy high-risk assets, including crypto. In some cases, banks may hinder individuals from using cash to buy digital assets, making credit cards choice.
However, buying a crypto with a credit card can bring extra costs. According to In order to win, some providers treat these transactions as a cash advancing, which may compromise higher fees and interest rates.
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