Barclays (BARC), one of many U.Ok.’s largest banks, stated it’s going to cease prospects 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 fee playing cards beginning June 27, it stated on a web site web page printed Wednesday. The web page cited “sure dangers” when buying crypto.
“We’re doing this as a result of a fall within the value of crypto belongings may result in prospects discovering themselves in debt they’ll’t afford to repay,” the web page reads. “There’s additionally no safety for crypto belongings if one thing goes fallacious with a purchase order, as they don’t seem to be lined by the Monetary Ombudsman Service and Monetary Providers Compensation Scheme.”
The FSCS reimburses as much as 85,000 kilos ($116,000) to prospects who lose cash if an establishment lined by this system fails.
Whereas banks stopping prospects 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 one thing related again in March 2023 at a time when wounds from the collapse of a number of crypto companies in 2022 have been nonetheless recent.
The financial institution didn’t present additional touch upon this matter when contacted by CoinDesk.
CORRECT (June 25, 16:37 UTC): Appropriate acronym for Monetary Providers Compensation Scheme in fourth paragraph.
