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Barclays Bank announced that customers are blocking customers in using Barclaycard credit cards to buy a crypto from June 27
This step was quietly confirmed in the new Updated part of FAQ On the official website of the bank.
According to Barclays, the decision is based on concerns about the protection of consumer and the risk of repayment. The bank warned that the volatility of the Krypto price could issue users debts they could not manage.
The bank also stressed that digital assets do not fall into British financial guarantees, and disabled customers would have limited use if the transaction went wrong.
It explained:
“We do this because the drop in the price of crypto assets could lead to customers in a debt that they cannot afford to repay. There is no protection for crypto assets if something goes wrong because the financial service scheme and compensation are not covered.”
This step reflects a wider regulatory discussion in the UK, with the Office of Tax Behavior (FCA) recently examines ways Limit cryptocurrencies made from borrowed funds.
The regulator emphasized the risks associated with the use of a loan for investment in high volatility assets, especially for inexperienced retail investors.
However, the decision of Barclays will only arrive months after the bank published a share of $ 131 million in Blackrock’s Ishares Bitcoin Trust (Ibit). This investment will place Barclays among the growing list of institutions that receive the Bitcoin ETF exposure in the US.
Meanwhile, the contrast between the restriction of the customer’s approach and the expansion of their cryptovnice points to the appearing abyss in how traditional financial institutions approach the crypto sector.
Although the new policy can protect users from risky loan procedures, it could also encourage investors to use non -traditional platforms.
In view of this, industry analysts predict growing demand for alternative ramps such as FINTECH and decentralized services that circumvent conventional banking systems.
