Several banks in the US and UK have banned their clients from investing in cryptocurrencies using their credit cards.
Lloyds Banking Group Plc (LLOY.L) and Virgin Money (VM.L) issued an official statement on the matter earlier this week and said that they are protecting their customers from potentially racking up huge amounts of debt due to the volatility of virtual currencies.
The banks are reportedly following the lead of banking giants JP Morgan Chase & Co (JPM.N) and Citigroup (C.N). However, banks such as UK’s Barclays and Spain’s BBVA said that they will not be putting restrictions on such purchases.
World’s second largest payment network Mastercard said last week that they saw a 1 percentage point rise in overseas transaction volumes in the fourth quarter due to cryptocurrency purchase using credit cards.