Barclays, a UK-based bank, will prohibit crypto transactions on its Barclaycard credit cards starting June 27. The decision stems from concerns regarding the volatility of cryptocurrency prices and the absence of regulatory protections for investors. Barclays emphasized that a downturn in crypto values could lead customers into unmanageable debt, as purchases are not covered by the Financial Ombudsman Service or the Financial Services Compensation Scheme. Although Barclays has allowed crypto transactions via credit cards since 2018, the bank's latest move reflects an escalating debate in the UK over the regulation of cryptocurrency purchases with credit. The Financial Conduct Authority (FCA) recently sought public opinion on potential restrictions. The Payments Association objected to perceived equating of crypto purchases with high-risk gambling and stressed that consumers should retain the ability to make informed financial decisions. Additionally, using credit cards for crypto purchases typically incurs extra costs, as some financial institutions classify these transactions as cash advances, leading to higher fees and interest rates.

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