Monday, 5 February 2018

Lloyds Banking Group and Virgin Money bans credit card purchases of Bitcoin



Lloyds Banking Group and Virgin Money have banned customers from using credit cards to buy Bitcoin and other cryptocurrencies.
 
The move comes amid fears that investors speculating on the volatile market could face huge losses.


Bitcoin surged in value during in 2017, starting the year at around $900 and topping $20,000 in December.


But it has since tumbled sharply, dipping below $8,000 on Friday on worries about a global regulatory clampdown.


In the UK, Theresa May has said Britain should take a serious look at digital currencies such as Bitcoin because of the way they can be used by criminals.


Lloyds Banking Group has now taken action on fears that some credit card customers are gambling on making big profits on cryptocurrencies and overlooking the fact they will be laden with debt if the price falls, the Daily Telegraph reported.


Customers will still be able to buy digital currencies with debit cards, it said.
 
 
The banking group said: "Across Lloyds Bank, Bank of Scotland, Halifax and MBNA, we do not accept credit card transactions involving the purchase of cryptocurrencies."


Virgin Money later confirmed it had taken the same stance.


RBS, which also includes Natwest, said it kept the situation under review all the time but it was currently allowing credit card purchases along with Barclays.




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