Lloyds Bank bans credit card purchases of Bitcoin

Lloyds Banking Group is banning 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.”

More from Business

Its move follows warnings by regulators and ministers in the US, South Korea, China, Russia, India, Germany and France over the market.

Meanwhile, Facebook recently banned adverts for Bitcoin and other cryptocurrencies on its sites after criticism from users about scams and hoaxes being promoted in their newsfeeds.

Share this content!