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The ban applies to Bank of Scotland, Lloyds Bank, Halifax, and MBNA customers and from Monday no more transactions on credit cards will be appreciated on the purchase of Bitcoin. Though it will not apply to debit cards, only to the banking group’s eight million credit card customers.
Banks fear people are buying Bitcoin to make a profit if its value rises but face debts if it falls. “We continually review our products and procedures and this is part of that.” said a spokeswoman of Lloyds Explaining the ban. The digital currencies still remain popular among criminals as they can use them to evade traditional money laundering checks and other regulations.
Bitcoin ended last week down 30% at $8,291.87 – its worst week since April 2013 and far below the $19,000 it reached last November. However, the cryptocurrency is still ahead of the $1,000 it was trading at this time last year. The sharp fall in the digital currency market has resulted in banks to take such serious action.
By matter of facts we need to wait and see if this ban comes from other banks around the world.