Published: Thu, February 08, 2018
Markets | By Rosalie Gross

Lloyds Bank also bans cryptocurrency purchases with credit cards

Lloyds Bank also bans cryptocurrency purchases with credit cards

In sight of the recent crash, and concerned that it may end up needing to bear large costs for unpaid debts, Lloyds Banking Group has banned the use of its credit cards to purchase cryptocurrency.

On Monday, UK bank Lloyds said it would also ban credit card purchases of cryptos.

Lloyds, which has 30million customers, is the first British bank to ban Bitcoin.

JPMorgan, which put the ban in place on Saturday, said it does not want to get involved with the credit risk associated with the transactions. Good guy banks? Pfft.

Over the past week, many banks have already issued a ban on using credit cards to buy cryptocurrencies. Nelms, you alright there, mate?

Meanwhile, the United Kingdom prime minister Theresa May said that action against cryptocurrencies may be taken, because they can be used by criminals for money laundering and funding of criminal activities. According to the newspaper's report, transactions using debit cards would not be blocked.

"We constantly review our protections for customers as a responsible bank and lender, and are keeping this matter under close review", a spokeswoman for Barclays said.

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Other credit card companies have also taken steps to prohibit consumers from using their cards to purchase cryptocurrencies.

Last Friday, the biggest USA banks - JPMorgan Chase, Bank of America and Citigroup - chose to stop short any bitcoin transactions with credit cards issued by the banks.

Bitcoin fell in value to $8,291.87 last week, a drop of 30 per cent over the week.

Bitcoin has lost more than half its value since December 18. It is now trading at $7,762, down 11.3 percent in the last 24 hours.

Over the past year, Bitcoin has seen its price surge by more than 700%.

Prime Minister Theresa May recently said that action against digital currencies may be required "precisely because of the way they are used, particularly by criminals".

The banking giant, which includes Halifax, MBNA and Bank of Scotland, is thought to be the first in the United Kingdom to ban credit card customers from borrowing to buy the digital currency, which has more than halved in value in recent months.

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