According to the The Telegraph, from today, nine million credit card customers of Lloyds Banking Group, which includes Bank of Scotland, Halifax, Lloyds Bank, and MBNA, will be blocked from purchasing cryptocurrencies such as Bitcoin, Litecoin and Ether. Canadian banks say they're watching carefully - especially with increasing regulatory scrutiny and the plunge in Bitcoin prices, w to its lowest since mid-November. Good guy banks? Pfft.
The block is only for credit cards to prevent potential heavy losses the bank said, debit cards can still be used to buy crypto. Nelms, you alright there, mate? Credit card issuers Capital One and Discover have also said no to crypto transactions.
The news came as Bitcoin prices fell below $8500 for the first time in more than two months.
There has yet to be a statement by Coinbase, the United State's largest exchange, as they now allow their U.S members to purchase cryptocurrencies via credit card on their platform.
Other cryptocurrencies have also fallen in the last few weeks after soaring, sometimes even far more than bitcoin, last year. According to the company's spokesperson Jennifer Bombardier: "We will continue reviewing our policies as this market continues to evolve".
Citigroup Inc, the nation's third-biggest bank, is still reviewing its policy.
All the banks involved cited volatility in cryptocurrency markets.
Concerns have risen among credit card providers because their customers have increasingly been using credit cards to fund accounts on online exchanges. One of the major reasons is that crypto currencies are hard for the banks to monitor.
As a result, the highly-volatile cryptocurrency trading market poses huge risks to both the investor and the lender if cyptocurrencies are purchased using a credit card. In other words, using their credit cards to jump on the Bitcoin bandwagon.