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05-Feb-2018<br />

Lloyds bans purchase of Bitcoin over consumer debt fears<br />

STV<br />

Click to open<br />

The cryptocurency halved in value in recent months, triggering the ban.<br />

Lloyds Banking Group has banned credit card customers from buying Bitcoin amid fears<br />

they could be left in debt as the cryptocurrency's value deflates.<br />

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

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

has more than halved in value in recent months.<br />

Bitcoin's slide has led to concerns that people who borrow money to purchase it will be left<br />

with large debts if the virtual currency continues to depreciate.<br />

Significant numbers of people in Britain are thought to have bought Bitcoin as it surged in<br />

value, peaking at nearly £14,465 in December.<br />

As <strong>news</strong> of Lloyds's ban emerged on Sunday the value was around £5,700.<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 />

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

over the cryptocurrency.<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 />

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

transactions.<br />

'Morning Briefing' <strong>news</strong>letter.<br />

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