In recent news, it has been announced that a number of UK banks have banned their customers from using credit cards to buy cryptocurrency. The banks in question are Lloyds, Virgin Money, Halifax, Bank of Scotland, and Citigroup.
This news has come as a surprise to many, as up until now these banks had been relatively tolerant of cryptocurrency purchases.
It is believed that the reason for the sudden change in policy is due to the volatile nature of cryptocurrencies. With prices fluctuating so rapidly, there is a greater risk that customers will be left out of pocket if they purchase crypto with a credit card and then the value drops.
This is not the first time that banks have taken action to limit their customers’ exposure to cryptocurrencies. Earlier this year, a number of US banks banned the purchase of crypto with credit cards, and more recently Mastercard announced that it would no longer allow crypto purchases to be processed on its network.
While some may see this as a negative development, it is worth noting that these banks are still allowing their customers to buy crypto with debit cards or via bank transfer. So while there may be some short-term inconvenience, it is still possible for UK residents to purchase cryptocurrencies.