Barclays (BARC), one of many U.Ok.’s largest banks, stated it would cease clients utilizing their bank cards to buy cryptocurrency by the tip of the week.
The London-based firm will block cryptocurrency transactions on its Barclaycard-branded cost playing cards beginning June 27, it said on a website page printed Wednesday. The web page cited “sure dangers” when buying crypto.
“We’re doing this as a result of a fall within the worth of crypto property may result in clients discovering themselves in debt they will’t afford to repay,” the web page reads. “There’s additionally no safety for crypto property if one thing goes flawed with a purchase order, as they are not lined by the Monetary Ombudsman Service and Monetary Companies Compensation Scheme.”
The FSCS reimburses as much as 85,000 kilos ($116,000) to clients who lose cash if an establishment lined by this system fails.
Whereas banks stopping clients utilizing their bank cards to buy crypto is nothing new, it’s unclear why Barclays has put this restriction in place now. Rival establishments Nationwide and HSBC did something similar again in March 2023 at a time when wounds from the collapse of multiple crypto firms in 2022 had been nonetheless contemporary.
The financial institution didn’t present additional touch upon this matter when contacted by CoinDesk.
CORRECT (June 25, 16:37 UTC): Right acronym for Monetary Companies Compensation Scheme in fourth paragraph.