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05-Feb-2018<br />

Lloyds Bank, Halifax and Bank of Scotland ban customers from buying Bitcoin on credit card<br />

The i News<br />

Click to open<br />

Lloyds Bank has banned customers from buying Bitcoin on their credit cards amid fear they<br />

could be left in debt if the cryptocurrency’s value deflates .<br />

The banking group, which includes the Bank of Scotland, Halifax and MBNA, is thought to<br />

be the first in the UK to ban credit card customers from borrowing to buy the digital<br />

currency.<br />

The value of Bitcoin has more than halved in recent months , but a significant number of<br />

people in Britain are thought to have bought the popular cryptocurrency as it surged in<br />

value, peaking at nearly $20,000 (£14,465) in December 2017.<br />

A spokeswoman for the banking group said: “Across Lloyds Bank, Bank of Scotland, Halifax<br />

and MBNA, we do not accept credit card transactions involving the purchase of<br />

cryptocurrencies.”<br />

Fears over regulation<br />

The move follows warnings by regulators in the US, South Korea, China, Russia and India<br />

over the cryptocurrency.<br />

Read more<br />

Ethereum, Litecoin…Dogecoin? Inside the next big cryptocurrencies<br />

Germany’s Bundesbank has also called for global regulation of Bitcoin and France’s finance<br />

minister wants tougher rules for cryptocurrencies.<br />

Meanwhile, Facebook banned adverts for Bitcoin and other cryptocurrencies on its sites<br />

after recent criticism from users about scams and hoaxes being promoted in their <strong>news</strong>feed.<br />

“We want people to continue to discover and learn about new products and services through<br />

Facebook ads without fear of scams and deception,” Rob Leathern, Facebook’s product<br />

management director said.<br />

‘Used by criminals’<br />

Critics say cryptocurrencies are used by criminals and rogue states to carry out clandestine<br />

transactions.<br />

Bitcoin is susceptible to rollercoaster market rides. In December, the cryptocurrency fell<br />

$2,500 in less than 12 hours – only to rise again later in the day .<br />

Earlier this month, US billionaire Warren Buffett ruled out a foray into cryptocurrencies,<br />

warning that the Bitcoin boom will “come to a bad ending”.<br />

Despite the fall in Bitcoin, its current value is significantly higher than its $900 dollar (£640)<br />

position recorded in January 2017.<br />

The post appeared first on iNews .

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