Barclays will prohibit the purchase of cryptocurrencies with their credit cards in the United Kingdom

The measure seeks to avoid dangerous indebtedness due to the volatility of cryptoactive, and adds to similar restrictions that have imposed other British banks in the past.

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• Barclays It will prohibit criptomoned purchases with a credit card since June 27.
  
• The entity cites debt risks and lack of consumer protection.
  
• JPMorgan, Lloyds and TB Bank They already applied similar measures in 2023.

Barclays, One of the largest banks in the United Kingdom, announced that as of June 27 it will block all cryptocurrency acquisitions made with credit cards issued by the institution.

According to information published by the entity, reviewed by The Block, Barclays It justifies the decision in the high volatility of digital assets and the absence of regulatory protections for consumers who face problems after a purchase.

“If something goes wrong with an acquisition of cryptocurrencies, there is no protection of the Financial Ombudsman Service or the Financial Services Compensation Scheme,” The bank warns on its official help page.

The prohibition will apply exclusively to purchases made with credit cards, which implies that other forms of payment, such as bank transfers or debit cards, could remain enabled for cryptocurrency related operations, although this was not explicitly clarified in the ad.

Similar measures of other British banks

Barclays is not the first bank in the United Kingdom that takes a restrictive position against cryptocurrencies. In 2023, JPMORGAN CHASE UK He also prohibited the purchase of digital assets with cards, citing a significant increase in complaints of scams associated with these products.

That same year, TB Bank and Lloyds Bank They also implemented similar restrictions. Both eliminated the possibility of deposits to exchanges and blocked the use of credit cards to acquire cryptoactive, in an effort to limit the exposure of their clients to possible economic losses and fraud.

This restrictive measures pattern reflects the growing concern of the British banking system regarding consumers’ safety due to the lack of a solid regulatory framework for cryptoactive.

Contrast with payment networks

Despite the hardening of bank policies, traditional payment networks continue to expand access to digital assets. On Monday, Mastercard announced an alliance with Chainlink which will allow card holders to convert FIAT money to cryptocurrencies and tokens directly in Blockchain, No need for centralized intermediaries.

This type of technological developments opens new paths for the mass adoption of cryptocurrencies, even when traditional financial institutions adopt a more cautious approach.

The divergence between banks and payment networks highlights the current dilemma of the financial ecosystem: while some actors try to protect their clients through restrictions, others are committed to integrating digital assets into their services, encouraging their adoption and normalization.

Back with Barclays, This type of restrictions could boost the regulatory debate around cryptocurrencies in the United Kingdom. Financial authorities have shown interest in establishing a legal framework that provides greater legal certainty to cryptoactive investors and users, although normative gaps still persist.

The measure of Barclays It marks a new chapter in the relationship between traditional financial institutions and the emerging cryptocurrency ecosystem, and could anticipate a broader change in the country’s regulatory position.

Article written by a content editor. Edited by Angel Di Matteo / Diariobitcoin

Original image of Depositphotos

WARNING: Diariobitcoin offers informative and educational content on various topics, including cryptocurrencies, AI, technology and regulations. We do not provide financial advice. Cryptactive investments are high risk and may not be adequate for all. Investigate, consult an expert and verify the applicable legislation before investing. I could lose all its capital.

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