Barclays recently banned the purchase of cryptocurrencies in the UK, sparking a debate on whether more restrictions are needed to prevent residents from buying crypto with credit cards. The Financial Conduct Authority (FCA) issued a paper on May 2, 2025, seeking views on whether “restrictions should be applied” to purchasing crypto with credit cards. In response to the FCA’s paper, the Payments Association, a London-based entity, rejected the idea of restricting crypto purchases through credit cards, arguing that it would unfairly equate digital assets with high-risk activities.
Concerns have been raised regarding the proposed ban on using credit cards to buy crypto. The suggestion seems to equate buying crypto with gambling; instead, consumers should be empowered to make informed choices within preset credit limits. The Payments Association highlighted that there are controls on using credit cards to purchase high-risk assets, including crypto.
While some banks may block individuals from using cash to buy digital assets, turning credit cards into a backup option, purchasing crypto with credit cards can incur additional costs. According to Bankrate, some issuers treat these transactions as cash advances, triggering higher fees and interest rates. It’s important to note that investment decisions are the reader’s responsibility. Conduct thorough research before buying or selling cryptocurrencies. Liputan6.com is not liable for any gains or losses resulting from investment decisions.
