1 month ago
Barclays (BARC), 1 of the U.K.'s largest banks, said it volition halt customers utilizing their recognition cards to acquisition cryptocurrency by the extremity of the week.
The London-based institution volition artifact cryptocurrency transactions connected its Barclaycard-branded outgo cards starting June 27, it said connected a website page published Wednesday. The leafage cited "certain risks" erstwhile purchasing crypto.
"We’re doing this due to the fact that a autumn successful the terms of crypto assets could pb to customers uncovering themselves successful indebtedness they can’t spend to repay," the leafage reads. "There's besides nary extortion for crypto assets if thing goes incorrect with a purchase, arsenic they're not covered by the Financial Ombudsman Service and Financial Services Compensation Scheme."
The FSCS reimburses up to 85,000 pounds ($116,000) to customers who suffer wealth if an instauration covered by the programme fails.
While banks preventing customers utilizing their recognition cards to acquisition crypto is thing new, it is unclear wherefore Barclays has enactment this regularisation successful spot now. Rival institutions Nationwide and HSBC did thing similar backmost successful March 2023 astatine a clip erstwhile wounds from the illness of multiple crypto firms successful 2022 were inactive fresh.
The slope did not supply further remark connected this substance erstwhile contacted by CoinDesk.
CORRECT (June 25, 16:37 UTC): Correct acronym for Financial Services Compensation Scheme successful 4th paragraph.
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