Barclays Imposes Ban on Crypto Transactions With Bank Cards | PYMNTS.com

Discover the most recent developments within the Bitcoin area. This article dives into: “Barclays Imposes Ban on Crypto Transactions With Bank Cards | PYMNTS.com”.

Barclays is ready to dam its prospects from making cryptocurrency transactions with their Barclays playing cards.

The British lender introduced the pending ban earlier this week, saying it will go into impact on Friday (June 27), and that it acknowledges “there are certain risks” that include buying crypto.

“We’re doing this because a fall in the price of crypto assets could lead to customers finding themselves in debt they can’t afford to repay,” the message reads. “There’s also no protection for crypto assets if something goes wrong with a purchase, as they’re not covered by the Financial Ombudsman Service and Financial Services Compensation Scheme.”

The ban was flagged in a report by Coindesk, which famous that it’s not clear why Barclays is making this resolution now. Other U.Okay. banks, together with Nationwide and HSBC, made comparable strikes in 2023, the report added, however that was within the wake of a number of high-profile crypto collapses.

As PYMNTS wrote on the time, these efforts adopted a push by the U.Okay.’s Financial Conduct Authority (FCA) to crack down on crypto. The regulator had for years thought of cryptocurrency a excessive threat, and went so far as threatening crypto executives with jail time in the event that they violated sure guidelines.

Regulators on the opposite facet of the Atlantic had been in the identical boat, warning monetary establishments to be cautious of “potential heightened liquidity risks” posed by sure sources of funding from crypto-related entities.

Since then, a altering of the guard in Washington has ushered in a brand new perspective towards digital belongings and banking, PYMNTS wrote earlier this week.

“Still, the transition is not without peril. Crypto markets remain volatile, cyber threats are evolving and the regulatory landscape is still under construction,” that report stated. “For banks, entering the space without a clear strategy could prove costly. Crypto in 2025, ultimately, isn’t about hype; it’s about infrastructure, compliance and risk management.”

Banks may even want to look at their inner capabilities, that report stated. From hiring blockchain-savvy compliance officers to creating safe custody options and forming partnerships with crypto-native companies, the price of entry is excessive.

“The flip side of the equation is the competitive landscape,” PYMNTS added. “Crypto-native firms and nimble FinTechs are already seizing market share. Companies like Coinbase, Circle, Fireblocks and Anchorage Digital have built robust infrastructure, compliant pathways and brand loyalty among digital-first users.”

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