From June 27, Barclays, one of the largest banks in the United Kingdom, will block cryptocurrency transactions for its clients using their cards. This is stated on the institution’s website.
The decision was explained by the risks associated with the volatility of digital assets.
The bank stated that the decline in cryptocurrency prices could lead to debts that clients may not be able to repay. Barclays also reminded that there is no protection for investors. Purchases of digital assets are not covered by the Financial Ombudsman Service and the Financial Services Compensation Scheme.
Barclays representatives advised clients to familiarize themselves with the risks on the website of the UK’s Financial Conduct Authority.
Meanwhile, more banks worldwide are integrating digital assets. For example, JPMorgan CEO Jamie Dimon announced that the conglomerate will soon allow clients to purchase the first cryptocurrency.
In May, the OCC revealed that American banks can conduct crypto transactions, provide custodial services through third parties, and also form tax reports on digital assets.
Earlier in April, the UK government introduced a draft of rules for the crypto industry.