Business

Policy

Lloyds Bank bans Bitcoin purchases by credit card customers

B-b-b.. is that the sound of a bubble bursting?

By Kat Hall

78 SHARE

Lloyds bank has stopped credit card customers from buying bitcoin, amid concerns of a credit risk surrounding the cryptocurrency's rapidly falling value.

Coming into effect today, the ban applies to Lloyds Bank, Bank of Scotland, Halifax and MBNA.

The currency has grown exponentially in the last year, peaking at $20,000 (£14,465) in December 2017. However, since then its value has rapidly decreased to about $8,000 (£5,700).

Banks are also increasingly concerned about the use of Bitcoin purchases by miscreants, fraudsters and money launderers.

A spokeswoman for UK-based Lloyds said: “Across Lloyds Bank, Bank of Scotland, Halifax and MBNA, we do not accept credit card transactions involving the purchase of cryptocurrencies.”

Lloyds is in the process of eliminating 1,000 jobs across the group.

The banking group is the first in the UK to ban users from buying Bitcoin, with an increasing number of US credit-card companies and banks having halted the purchase of Bitcoin and other cryptocurrencies on credit cards last week.

JPMorgan enacted the ban on Saturday, with a company spokeswoman telling Bloomberg it did not want the credit risk associated with the transactions.

Bank of America and Citigroup have also said they are halting purchases.

Last month, Facebook banned ads for cryptocurrencies on suspicion that plenty of them will be placed by scammers.

Online gaming marketplace Steam also stopped accepting bitcoin as a payment method at the end of last year, citing its “high fees and volatility. ®

Bootnote

Lloyds customers can still buy on debit, if they have the appetite. Like, er, this guy....

Sign up to our NewsletterGet IT in your inbox daily

78 Comments

More from The Register

Brit bank Lloyds carves out role for ex-Microsoft design guy Dan Makoski

Never mind the cuts and outsourcing – there's always room for a Chief Design Officer

Lloyds Bank payments glitch frustrates merchants

C'mon, you POS... >:(

Black Horse Down, we repeat... yes, Lloyds Bank, again

We're running out of backcronyms for TITSUP*

Lloyds Banking Group to splash £3bn on tech

IT spend will 'reduce overheads'. You mean branch closures?

Brit bank TSB TITSUP* after long-planned transfer of customer records from Lloyds

Updated Users continue to report issues despite claims it's fixed

Lloyds' Avios Reward credit cardholders report fraudulent activity

Concerns raised over data breach

Black horse blacks out: Lloyds Bank website goes down

Company: We don't know what happened, couldn't tell you if we did

Black Horse Down: Lloyds Banking Group goes TITSUP*

Lloyds lost, Halif*xed, and Bank of Scotland scotched

Lloyds Bank customers still flogging the online dead horse

Banker's PR: Normal service levels resuming... whether that continues, we DON'T KNOW

Lloyds Bank outage: DDoS is prime suspect

But it is keeping schtum