Barclays bans credit card crypto buying months after backing bitcoin ETF
Banking giant Barclays is prohibiting its customers from buying crypto using its credit cards this week, despite investing $131 million into BlackRock’s bitcoin (BTC) ETF holdings almost six months ago.
Barclays announced today that it will ban crypto transactions via Barclaycard on June 27 due to the “risks” of crypto, including its high volatility that can leave “customers finding themselves in debt they can’t afford to repay.”
It noted that crypto assets aren’t covered by UK compensatory schemes or the country’s Financial Ombudsman Service.
The crypto ban comes just six months after Barclays decided to invest millions in buying shares in the iShares Bitcoin Trust on December 31.
When asked to comment on the apparent change in attitude, Barclays told Protos, “Today’s move is specific to Barclaycard and our credit card customers.”
Read more: BlackRock wants to stop bitcoin ETF outflows with 1-2% allocation target
Barclays joined the likes of Goldman Sachs and JP Morgan in acquiring positions in BTC ETFs, which allow investors to trade shares of BTC without directly owning them.
Earlier this month, the UK’s financial conduct authority claimed it’s considering lifting a ban on retail investors buying into exchange-traded notes.
David Geale, the FCA’s executive director of payments and digital finance, said, “We want to rebalance our approach to risk and lifting the ban would allow people to make the choice on whether such a high-risk investment is right for them, given they could lose all their money.”
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