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05-Feb-2018<br />

Lloyds Bank bans customers from buying bitcoins using credit cards<br />

theguardian.com<br />

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Banking group fears cryptocurrency’s plunging value could leave it with huge debt Lloyds<br />

Banking Group Banking group fears cryptocurrency’s plunging value could leave it with<br />

huge debt Press Association<br />

Mon 5 Feb 2018 01.26 EST Share on Facebook Share on Twitter Share via Email View<br />

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WhatsApp Share on Messenger Close Lloyds Bank Photograph: Peter Nicholls /<br />

Reuters/Reuters Lloyds Banking Group has banned credit card customers from buying<br />

bitcoin amid fears it 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 cyptocurrency, which<br />

has more than halved in value in recent months. Bitcoin’s slide has led to concerns that<br />

people who borrow money to purchase it will be left with large debts if the virtual currency<br />

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 $20,000 (£14,465) in December. As <strong>news</strong> of Lloyds’s ban emerged<br />

on Sunday the value was about $8,000 (£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 />

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 />

This month US billionaire Warren Buffett ruled out a foray into cryptocurrencies, warning the<br />

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

The chairman and chief executive of Berkshire Hathaway has joined the chorus of voices<br />

criticising the digital currency. His comments came just a day after JP Morgan’s chief<br />

executive, Jamie Dimon, said he regretted calling bitcoin a “fraud”, though he is still not<br />

interested in the digital currency. Despite the slide, bitcoin’s current value is significantly<br />

higher than its $900 (£640) position recorded in January 2017. Topics Lloyds Banking<br />

Group Bitcoin Banking Cryptocurrencies <strong>news</strong> Share on Facebook Share on Twitter Share<br />

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