UK's second largest bank, Barclays: Starting from 6/27, credit card purchases of Crypto Assets will be prohibited due to concerns over Fluctuation and users' inability to repay credit card debts.

The UK's second-largest bank, Barclays, has suddenly announced that starting from June 27, it will prohibit customers from using its credit cards for any cryptocurrency transactions. (Background: Trump plans to sign an executive order to prohibit banks from discriminating against the crypto industry, Powell agrees: banks can serve Web3 companies) (Additional background: Why the Federal Bank has blocked designated transfers: the ratio of crypto accounts being flagged as warning accounts is too high, making it difficult to trace fraudulent flows) Last night, Barclays, the second-largest bank in the UK, suddenly announced that starting from June 27, it will prohibit customers from using its issued credit cards for any cryptocurrency transactions. It stated that if users wish to continue investing, they can only use debit cards, bank transfers, or dedicated crypto payment tools. Behind the risk considerations, Barclays pointed out in a brief statement that the prices of cryptocurrencies fluctuate dramatically, and if cardholders enter the market using credit limits, once the market price suddenly drops, their debt pressure will rise accordingly. Starting from June 27, 2025, we will block all cryptocurrency transactions made through Barclaycard, as we recognize that there are specific risks associated with purchasing cryptocurrencies. We are doing this because the decline in crypto asset prices may lead customers to bear unmanageable debt. Additionally, if there are issues with the transactions, crypto assets are not protected by the Financial Ombudsman Service and the Financial Services Compensation Scheme, leaving no protection. For more information on cryptocurrencies and their related risks, please visit the official website of the UK's Financial Conduct Authority (FCA) and search for 'crypto the basics.' Source of the image: Barclays. Previously, the UK's Financial Conduct Authority (FCA) had issued multiple warnings to several exchanges, urging banks to strengthen their reviews to prevent fraud. Unlike traditional card consumption, purchasing cryptocurrencies lacks the protection of the Financial Ombudsman Service and the Financial Services Compensation Scheme, making it difficult for cardholders and banks to recover funds in case of losses, resulting in ineffective security for funds. Although the UK government's goal is to bring cryptocurrency companies under transparent rules, Barclays' actions reflect a cautious stance. In response, some industry professionals criticize this move for equating cryptocurrency investment with gambling, limiting consumer choice; however, others believe that restrictions will force trading platforms to strengthen compliance requirements, which will help reduce systemic risks in the long run. Related reports: Bank of America: Bitcoin is a 'disruptive innovation' equal to the printing press over the past thousand years! Taiwan's Financial Supervisory Commission approves 'Bitcoin custody'; KGI, Citibank, and Federal Bank rush to pilot. Why? This crypto cycle has many U cards and bank co-branded payment cards? <The UK's second-largest Barclays Bank: Credit cards banned for buying cryptocurrencies from 6/27 due to high volatility concerns about users not being able to repay card debts> This article was first published in BlockTempo, the most influential blockchain news media.