US and UK Banks Ban Bitcoin Purchases Via Credit Card

On February 5, UK-based Lloyds Banking Group joined major US banks in banning purchases of bitcoin and other cryptocurrencies via credit card amid debt and security concerns.

An LBG spokesman said the ban was across its Lloyd Bank, Bank of Scotland, Halifax and MBNA branded credit cards.

In a brief statement, he said LBG does "not accept credit card transactions involving the purchase of cryptocurrencies".

Recently, US lenders Bank of American, Citigroup and JPMorgan each introduced the same ban. There is a concern that customers who bought bitcoin in late 2017 when crytocurrencies in general surged in value have been left with big losses following massive declines in recent times.

An LBG spokesman said the ban was across its Lloyd Bank, Bank of Scotland, Halifax and MBNA branded credit cards.

As of February 5, the price of bitcoin tumbled to $7,950, two months after breaking through the $20,000 mark.

It comes as China plans to stamp out all remaining cryptocurrency trading in the country by blocking access to overseas-based websites and removing related applications from app stores.

The international value of bitcoin and other cryptocurrencies have plunged in 2018 amid fears of a crackdown in Asia and concerns that many currencies' rapid rise in value in 2017 could reflect a bubble.

(Credits: Outlook India)