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05-Feb-2018<br />

Lloyds bans Bitcoin credit card purchases<br />

FStech (Online)<br />

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Snippet Written by Michelle Stevens 05/02/2018<br />

Lloyds Banking Group is to prohibit its customers from purchasing Bitcoin and other<br />

cryptocurrencies on their credit cards from today.<br />

The ban – which does not apply to debit cards – will effect customers of Lloyds Bank, Bank<br />

of Scotland, Halifax and MBNA.<br />

The financial institution has made the move to avoid exposure to unpaid debts relating to<br />

customers buying cryptocurrencies – which are notorious for their price fluctuations. The<br />

value of Bitcoin, for example, surged in late 2017 but has since started to fall.<br />

Many governments and regulators around the world remain wary of cryptocurrencies and<br />

their unproven track record.<br />

Last September, South Korea followed China’s lead in banning Initial Coin Offerings (ICOs)<br />

– a way of raising funds from the public using the digital sale of cryptocurrencies. In the<br />

same month, the Financial Conduct Authority also issued a warning to UK consumers about<br />

the risks of ICOs.<br />

A Lloyds Banking Group spokesperson confirmed to FStech this morning: “Across Lloyds<br />

Bank, Bank of Scotland, Halifax and MBNA, we do not accept credit card transactions<br />

involving the purchase of cryptocurrencies.<br />

“This is a case of protecting our credit card customers from the risks associated with the<br />

price volatility of cryptocurrencies seen over recent months.”

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