UK’s Lloyds Bank has banned buying Bitcoin through Credit Cards

Major British retail banking giant Lloyds is blocking its credit card users from purchasing cryptocurrencies like bitcoin. Customers with debit cards will, of course, remain unaffected.

According to the report published by Telegraph, from today, Lloyds Banking Group has stopped its 9 million credit card users from purchasing bitcoin and other cryptocurrencies between the worry of future unpaid debts at a time while cryptocurrency prices will not be on the slide. The prohibition made Llyods the first bank in the UK to stop credit card from buying any cryptocurrencies, it is to extend the subsidiary banks including Halifax, Bank of Scotland and MBNA.

A spokesperson for Lloyds told:

“Across Lloyds Bank, Bank of Scotland, Halifax and MBNA, we do not accept credit card transactions involving the purchase of cryptocurrencies.”

The reports say that the bank will be setting up a ‘blacklist’ which will signal the sellers of cryptocurrencies to keep customers from purchases. According to the spokesperson, the aim is to protect the customers from unaffordable losses. The report also declares that the ban will not move towards the debit card customers, who will be able to buy cryptocurrencies constantly through their bank accounts.

The UK banking group’s new policy has arrived after the JPMorgan Chase and Bank of America stopped accepting bitcoin using credit cards over the weekend.

It has been predicted that bitcoin can drop down to $5000 and because of the fluctuation in the price customers can lose all their money, which will make banks job complicated to pull funds back from the customers, therefore, the decision to stop credit card came into effect.