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Bank Barclays based in the UK will begin Blocking Crypto transactions made through its Barclaycard credit cards since Friday, citing risks associated with volatility of cryptocurrency.
According to the bank’s website, the decision was based on concerns about the price of volatile tokens and the lack of regulatory railing for investors. “We do this because a drop in price of crypto assets could lead to customers in a debt that they cannot afford to repay,” Barclays said, adding that:
“Nor is the protection of crypto assets if something goes wrong with the purchase because they do not apply to the scheme of financial services and financial services compensation.”
A spokesman for Barclays refused to comment on the decision.
Barclays has allowed Crypto transactions through their credit cards since 2018, allowing customers to buy digital assets on cryptocurrency stock exchanges. In 2023 the company reported More than five million credit card accounts in the UK.
https://www.youtube.com/watch?v=u2Mx4hqanj4
Barclays’ prohibition of cryptal purchases comes in the middle of the ongoing debate in the UK about whether more restrictions are needed to prevent residents from buying a crypto with a loan.
May 2. Published Contribution looking for opinions on whether “restrictions should be used” to buy a crypto with a loan.
Related: Former Barclays executed to start the first regulated crypto bank in the UK in 2020
Payment Association responds to FCA paper
Payment Association, London Entity, pushed Back against the idea of restricting the purchase of cryptors through credit cards in response to the FCA document and claims that such a step would unfairly correspond to digital assets with high -risk activities.
“There are concerns about the proposed ban on the use of credit cards to purchase a crypto.
Payments Association notes that checks already exist for the use of credit cards to purchase high -risk assets, including crypto. In some cases, banks can block individuals to use cash to purchase digital assets, which makes credit cards the possibility of backup.
However, buying a crypto with a credit card can carry additional costs. According to For bandatting, some issuers consider these transactions to be of cash progress that can cause higher fees and interest rates.
Magazine: Legal panel: Crypto wanted to overthrow banks, now it happens in the fight Stablecoin
