Following recent announcements by JPMorgan (NYSE:JPM), Bank of America (NYSE:BAC) and Citigroup (NYSE:C), customers will not be allowed to purchase cryptocurrency on their credit cards. Lloyds Banking Group, the largest bank in the United Kingdom, has now joined its American counterparts in the “anti-crypto campaign”.
Credit cards issued by Lloyds — including those from Halifax, Bank of Scotland, and MBNA — will be blocked from making crypto purchases through an online blacklist that will flag sellers. However, customers will still be able to buy cryptocurrencies with their debit cards for now.
According to a CNN report, this decision was made by the U.K. bank to “protect its customers” from making speculative buys on volatile assets like Bitcoin.
In addition to Lloyds, financial services firm Virgin Money has also placed a cryptocurrency ban on its credit cards. Similar to Lloyds, Virgin was concerned with customers accumulating large amounts of debts following sharp declines in the cryptocurrency market.
Currently, the boundaries set against cryptocurrency are getting more and more rigid. Not only are banks now placing stringent rules on these digital assets, entire nations have also been cracking down heavily as well, most prominently China, South Korea, and more recently India.
On Friday, Indian Finance Minister Arun Jaitley said his country would “take all measures to eliminate the use of these crypto assets in financing illegitimate activities or as part of the payment system.”
With these bans, owning cryptocurrency in arguably two of the biggest western countries, has become more difficult.
Perhaps people will now start to invest more cautiously in cryptocurrency if they can’t use “borrowed money”.
Who will be next to join the crypto bans? Only time will tell.
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