Barclays (BARC)One of the largest banks in the United Kingdom, said it will prevent customers from using their credit cards to buy cryptocurrencies for the end of the week.
The London -based company will block cryptocurrency transactions on its payment cards with the Barclaycard brand starting on June 27, he said on a website page published Wednesday. The page cited “certain risks” when buying cryptography.
“We are doing this because a drop in the price of cryptographic assets could lead to customers to be in debts that cannot afford to pay,” says the page. “There is also no protection for cryptographic assets if something goes wrong with a purchase, since they are not covered by the financial defender’s service and the financial services compensation scheme.”
The FSCS reimburses up to 85,000 pounds ($ 116,000) To customers who lose money if an institution covered by the Falla program.
While banks that prevent customers from using their credit cards to buy cryptography is nothing new, it is not clear why Barclays has implemented this restriction now. The rival institutions throughout the country and HSBC did something similar in March 2023 at a time when the wounds of the collapse of multiple cryptographic firms in 2022 were still fresh.
The bank did not provide more comments on this matter when it was contacted by Coindesk.
CORRECT (June 25, 16:37 UTC): Correct acronym for the compensation scheme of financial services in the fourth paragraph.
