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05-Feb-2018
Fears over stability of Bitcoin prompts Lloyds credit card purchase ban
insider.co.uk
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Lloyds Banking Group has banned its customers from buying Bitcoin and other cryptocurrencies
on their credit cards, amidst fears for the stability of the currencies.
The ban, starting Monday, applies to Lloyds Bank , Bank of Scotland , Halifax and MBNA
customers.
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It will not apply to debit cards, only to the banking group's eight million credit card
customers.
The move follows a sharp fall in the value of digital currencies, prompting fears about people
running up debts.
The move reflects Lloyds fears that it could end up footing the bill for unpaid debts should
the price continue to fall.
Explaining the ban, a Lloyds spokeswoman said: "We continually review our products and
procedures and this is part of that."
Bitcoin ended last week down 30 per cent at $8,291.87 - its worst week since April 2013 and
far below the $19,000 it reached last November.
However, the cryptocurrency is still ahead of the $1,000 it was trading at this time last year.
Police have warned that digital currencies remain popular among criminals as they can use
them to evade traditional money laundering checks and other regulations.
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".
She said: "In areas like cryptocurrencies, like Bitcoin, we should be looking at these very
seriously."
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The Treasury said that it intends to update regulation to bring virtual currency platforms into
anti-money laundering and counter-terrorist financing regulation.
The social media giant Facebook recently announced that it would block any advertising
that promotes cryptocurrency products and services.