Barclays to Halt Cryptocurrency Transactions for Clients Citing Risk Concerns

Starting from June 27, Barclays, one of the UK’s largest banks, will prohibit customers from conducting cryptocurrency transactions using their cards. This information is available on the bank’s official website.

The bank attributed this decision to the risks associated with the volatility of digital assets.

Barclays expressed concerns that declines in cryptocurrency prices could result in debts that customers might struggle to repay. They also reminded clients that there is no protection for investors in this domain. Purchases of digital assets are not covered by the Financial Ombudsman Service or the Financial Services Compensation Scheme.

Barclays representatives advised customers to familiarize themselves with the risks by visiting the UK’s Financial Conduct Authority website.

Meanwhile, a growing number of banks across the globe are beginning to incorporate digital assets. For instance, JPMorgan’s CEO Jamie Dimon recently announced that the conglomerate will soon enable clients to purchase Bitcoin.

In May, the OCC reported that American banks have the ability to facilitate cryptocurrency transactions, offer custodial services through third parties, and also prepare tax reporting for digital assets.

It is worth noting that in April, the UK government released a draft set of regulations for the cryptocurrency industry.