Both Lloyds of England and Virgin England both said they would ban customers from buying encrypted currency on credit cards after U.S. banking giant JP Morgan and Citigroup also issued the same ban, A spokeswoman said the move aims to protect consumers from the huge debts they face as the virtual currency plunges in value.
As credit card users are increasingly using credit cards to fund online trading accounts, cryptocurrencies are the main source of funding and credit card providers' concerns are aggravating, although some banks said they will continue to allow customers to buy on credit cards Encrypt currency.
A spokesman for Barclays UK said on Monday that Barclays has been reviewing its own protection of customers as a responsible bank and lender and will be closely following the issue. Currently, British customers can use their Barclays debit cards and Barclays cards, legitimate purchases of cryptocurrencies.
Last week, MasterCard, the world's second-largest payment network, said that the number of customers who bought encrypted currency with credit cards rose to an increase of 1 percent in overseas transactions in the fourth quarter when the value of bitcoin rose sharply, The Japanese bank reached a peak of 19,187 U.S. dollars in the Bitcoins exchange in Luxembourg.
However, the largest and most well-known cryptocurrency fell sharply since then, falling more than 10% on Monday and below the $ 7,000 mark, extending the recent downtrend as markets worry about pressure from global regulators. A Master Spokesman said whether to allow The decision of a credit card user to purchase a cryptocurrency is a credit risk decision made by the issuing bank.
A spokesman for Chase Bank said no credit card purchases of cryptocurrencies have yet to be processed due to market fluctuations and risks, and Citibank spokesman confirmed a similar ban but no reason was given. Lloyds Banking Spokesperson Said in an e-mail that Lloyds Bank, Bank of Scotland and Halifax Bank do not accept credit card transactions involving the purchase of cryptocurrencies.
Although the British "Daily Telegraph" reported last Sunday (February 4) that credit card customers would be barred from buying bitcoins online through 'blacklists,' Lloyds Bank did not say how to implement the ban. A spokesman for Royal Bank of Scotland declined to comment on the bank's policy.
Prior to this, British Prime Minister Teresa May has said that Britain should take a serious look at cryptocurrencies, such as bitcoin, because they may be exploited by criminals.