Britain’s Lloyd’s Bank to ban credit card owners from buying bitcoin

Lloyds Banking Group Plc will ban its credit card customers from buying bitcoin amid fears that they could run up huge losses, The Telegraph reported on Sunday.

Britain’s biggest mortgage lender will block any attempts to buy the digital currency with a credit card starting Monday, but digital currencies could be bought with debit cards, the paper said.

Credit card customers of the bank, including Halifax, Bank of Scotland and MBNA will be blocked from buying bitcoin online through a blacklist which will flag up sellers, according to The Telegraph.

Lloyds could not be immediately reached for comment on the report.

The company fears that credit card owners will buy bitcoin hoping to make a profit when its value goes up, but will be laden with debt if its price falls, the paper reported.

Prime Minister Theresa May has said Britain should take a serious look at digital currencies such as bitcoin because of the way they can be used by criminals.

Digital currencies plunged on Friday, with bitcoin at one point sliding below US$8,000 and headed for its biggest weekly loss since December 2013, amid worries about a regulatory clampdown globally.

(REUTERS)