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Bitcoin price LIVE: Bitcoin plunges to $7k as Lloyds Bank bans credit card crypto buys

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The ban extends to other household names in the banking giant’s credit card family including Bank of Scotland, Halifax and MBNA.Wallet holders would have been hoping for a better start to the week but news of another mainstream finance firm being spooked by price volatility and regulatory threats means that other credit cards retailers around the world will be studying the fallout from Lloyds’ ban.The Lloyds group has over eight million credit card customers and the ban stems from the fear that customers began buying cryptocurrencies to make a quick profit in the run-up to Christmas.

However, with the price now significantly below the mark many UK buyers paid for their cryptocurrencies, Lloyds’ customers are now servicing a debt much higher than the worth of of the digital tokens in their wallets.

Lloyds is concerned about its exposure to crypto-risk as it could end up footing the bill for unpaid debts should the price continue to fall.

A Lloyds spokeswoman told the BBC: “We continually review our products and procedures and this is part of that.”

A number of US credit card firms have also banned crypto purchases on credit cards.

Bank of America began blocking cryptocurrency purchases on Friday while JPMorgan did the same on Saturday.

Citigroup will soon stop cryptocurrency purchases on credit, following on from Capital One and Discover.

All of the top five credit card issuers in the US have now announced or implemented bans, according to Fortune.

Source https://www.express.co.uk/finance/city/914520/Bitcoin-price-LIVE-falling-latest-ripple-ethereum-blockchain-lloyds-bank-credit-card