Barclays Halts Bitcoin and Crypto Credit Card Transactions as Global Mainstream Push Grows

British banking giant Barclays announced it will cease processing Bitcoin and cryptocurrency transactions on its credit cards starting June 27, 2025, according to a notice on its official website. The decision aligns with similar moves by other major lenders but contrasts with the growing global acceptance of cryptocurrencies, particularly in the United States. Barclays’ move highlights a cautious approach to digital assets, citing financial risks to customers and a lack of regulatory protections.

Barclays’ notice explains that the bank aims to shield customers from potential debt caused by volatile crypto prices. The bank emphasized that a sharp decline in cryptocurrency values could leave cardholders with unmanageable debt. Additionally, Barclays pointed out that crypto assets lack coverage from the Financial Ombudsman Service and the Financial Services Compensation Scheme, leaving consumers vulnerable if issues arise with purchases. This policy shift follows similar restrictions by major institutions like Lloyds, Virgin Money, JPMorgan, and Citigroup, signaling a broader trend among traditional banks to limit crypto exposure on credit.

Global Crypto Surge Meets Banking Caution

The decision comes at a time when cryptocurrencies are gaining mainstream traction worldwide, particularly in the United States following President Trump’s reelection in 2024. Trump’s campaign pledge to make the U.S. the “crypto capital of the world” has spurred significant regulatory advancements, including the GENIUS Act and proposed stablecoin legislation. The establishment of a national Strategic Bitcoin Reserve has further propelled Bitcoin and other digital assets into the global spotlight. These developments have fostered greater acceptance of cryptocurrencies, positioning them as a legitimate asset class for investors and institutions alike.

Despite its credit card restrictions, Barclays is not entirely detached from the crypto market. The bank’s latest SEC 13F filing reveals it holds 2,473,064 shares of BlackRock’s iShares Bitcoin Trust (IBIT), valued at roughly $131 million as of December 31, 2024. This investment underscores a nuanced approach, as Barclays engages with Bitcoin through regulated exchange-traded funds while limiting direct crypto purchases on its credit platform. The bank also noted it is reviewing its crypto policy on a country-by-country basis, suggesting potential flexibility in regions with stronger regulatory frameworks.

The contrast between Barclays’ cautious stance and the global crypto boom highlights a broader tension in traditional finance. While banks prioritize customer protection and risk mitigation, the rapid adoption of digital assets is reshaping the financial landscape.