Lloyds issues strict ruling denouncing the cryptocurrency trading with credit cards

5 February 2018

UK retail and commercial banking giant, Lloyds Banking Group made itself clear with univocal statement banning the use of credit cards by the consumers for purchasing cryptocurrencies, and Bitcoin, in particular. All customers holding cards from Lloyds, Bank of Scotland, Halifax and MBNA were notified that the transactions performed on their credit cards for buying digital currencies will not be honored starting from Monday, February 05.

As the price in Bitcoin and other cryptocurrencies soared up sharply before the Christmas, digital asset trading lured many unwitting customers to chase profiteering, leaving many of them back at the bottom of the ladder when the prices of Bitcoin slid backwards dropping 57% during New Year celebrations.

Last week Bitcoin ended trading well below 30% at the price of $8,291, an unthinkable plunge from the benchmark of over $20,000 recorded in December. On the heels of absolutely uncontrollable rate fluctuations, Lloyds and other banks are taking proactive measures to protect their portfolios against unpayable debts.

While Lloyds is the first in the United Kingdom to introduce such an explicit denunciation of the cryptocurrency trading, major banks in the United States such as JPMorgan Chase, Bank of America, Capital One, Discover and Citi have already passed their decisions expressly stating that purchasing cryptocurrency with credit cards will not be upheld.

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