Lloyds Bank group bans customers from buying bitcoins on credit cards

The banking group has banned its customers from buying bitcoins on credit cards due to its volatile nature

Lloyds Bank has banned customers from buying bitcoins on their credit cards fearing debt due to the volatile nature of crypto currencies. But, customers can still buy crypto currencies using their debit cards.

However, the fees associated with cards makes buying bitcoins on credit card more expensive compared with buying one through a bank transfer.

The banking group, which includes the Bank of Scotland, Halifax and MBNA is believed to be the first in the UK that has banned customers from borrowing to buy the virtual currencies.

A spokeswoman for the banking group said that across Lloyds Bank, Bank of Scotland, Halifax and MBNA, the group does not accept credit card transactions involving the purchase of crypto currencies.

The move by the banking group follows warnings over the crypto currencies by regulators in South Korea, China, the US, India and Russia. There are worldwide concerns regarding the use of the crypto currency due to the anonymous nature of transactions. Crypto currencies are thought to be used by criminals to carry out clandestine transactions.

Germany’s Bundesbank and France have also called for global regulation of bitcoin. France’s finance minister wants tougher rules for crypto currencies.

In the UK, most people are supposed to have bought the virtual currency during the time when the value of the virtual currency peaked at nearly $20,000 (£14,465) in December 2017. However, the value of crypto currency has fallen since then and reduced by more than half in recent times. Despite the fall, its current value is significantly higher than its $900 dollar (£640) position recorded in January 2017.

Meanwhile, Facebook banned adverts for bitcoin and other crypto currencies on its sites after recent criticism from users about scams and hoaxes being promoted in their newsfeed. Facebook’s product management director, Rob Leathern said that it wants people to continue to discover and learn about new products and services through Facebook ads without fear of scams and deception.

Earlier this month, US billionaire Warren Buffett had warned regarding bitcoins, saying that the bitcoin boom will have a bad ending.