Bitcoin Forum

As prices tumble and the markets make a huge correction from their spike in early January, the banks are battening down their hatches. Leading UK bank Lloyds joined its counterparts in the US by banning the purchase of Bitcoin and other cryptocurrencies for its customers using credit cards.

Credit card issuers fear that people will fall into debts that they will have to shoulder if they buy crypto and the prices continue to fall. Bitcoin has taken a battering this year, falling over 50% from $17,000 in early January to around $8,000 today.

CREDIT CRACKDOWN

Lloyds Banking Group will make the announcement to its 9 million credit card customers today. According to reports, the bank will block any attempts to buy cryptocurrencies using credit cards. However, debit cards are still accepted. In an email, a company spokesperson said:

"Across Lloyds Bank, Bank of Scotland, Halifax and MBNA, we do not accept credit card transactions involving the purchase of cryptocurrencies."

The banking giant is the first in the UK to clamp down on its customer’s credit cards and purchasing power. This could further exacerbate the fall in prices as it has just become a little harder to buy crypto. The banks, not wanting to finance a falling knife, are already anti-crypto as decentralized money goes against their business model.

The move follows a wave of regulation across the world from governments which want to prevent digital currencies being used for criminal activities. Contrary to a number of misleading reports in the mainstream media, there has been no ban on trading or exchanges in India or South Korea.

Continue reading >> http://bitcoinist.com/crypto-credit-cards-banned-uk-banks/

While it's true that going into debt to buy Bitcoin on credit is irresponsible behaviour, this also highlights the power banks have over you.  In essence, they're only demonstrating with this decision why the system needs to change.  Banks should not be in a position to dictate what you can or can't buy, especially when there's a conflict of interest like this when something threatens their business model.  It's also preferable if humanity as a whole placed far less emphasis on buying things on credit and the rampant levels of unbridled consumerism we exhibit as a whole.  People have become too accustomed to going into debt to buy shit they don't even need.  As such, moving away from a debt-based monetary system will be beneficial in redressing our societal dysfunctions about "money" and what that actually means.

This ban might stop the Lloyds customers to buy cryptocurrencies via Coinbase or via services similar to Coinbase.I`m wondering how can Lloyds stop their customers to buy cryptocurrencies via Localbitcoins.com.
It`s impossible.The localbitcoins transaction will look like any other bank transaction and the btc seller will release the btc from escrow.Anyway,such news will push the cryptocurrency prices down.

I agree with that. But preventing people buying high risk asset with credit card could be the right move.

People don't seem to understand this, and likely never will. If we look at how long people have been putting themselves into debt, which is another major reason why poor people get poorer, it's safe to say that things will only get worse throughout the years. It's getting more common than ever before where people work just to get their bills paid, which these financial institutions know as well, and results in them gladly offering these vulnerable group of people easy access to money, but at a very high price, literally. Debt means submission, and that's exactly what this system is all about. We are living in a time where the far majority of our financial tasks are being processed and maintained by centralized organisations, and that's quite a worrying development. It's time for sheeps to wake up and distance themselves from this system by taking the necessary actions.

This exact action from a centralized authority is what we are fighting against. The Banks dictate what you can do with your

money. {You still owe the debt to them, so in theory, this is your money} What will be next? Why did most of these Banks

block money going to WikiLeaks? { https://wikileaks.org/MasterCard-breaks-ranks-in.html }  .... They see Bitcoin as the

enemy and they hide behind the "customer protection" excuse.  ::)

Do not burden yourself with debt, buy cryptocurrencies using cash instead of credit card.
UK bank LLoyds doesn't want to help to defray the expenses of the customers in order to buy in the dip, there is no strange act here, totally normal.
Lack of financial knowledge will lead people to an endless debt for the rest of their life.

While that's true, we don't and shouldn't accept how banks are deciding for us what to do. If they don't have any problems putting people into more debt by allowing them to buy garbage they don't need, why should they care about people buying crypto? Right, they don't want people to buy themselves into crypto because of its completely opposite purpose. It would suit them to just admit that, but they of course don't want to be accused of being against crypto. The only 'positive' side of this is that people won't use borrowed money to invest in something they don't know, but unfortunately it's something they are forced to abide by. I wouldn't mind banks just issuing a warning that they don't recommend anyone to buy crypto with credit, but that's not effective enough for them....

they aren't dictating what you can or can't buy. they aren't blocking debit card purchases or regular transfers/wires because those aren't loans from the bank. i think there would be much more of a consumer backlash if banks tried to cut off cryptocurrency investment as a matter of policy. they'd also be pissing away a lot in transaction fees.

to me, this is basically non-news. we should have seen it coming after the news from JP morgan and BOA. it's appropriate timing for the policy given the onslaught of bad news and price decline, too.

They are just being greedy. Although I support limitation of buying crypto with credit card.

In what way greedy? I can't deny that banks are greedy by nature, but in this case it's not about that. It's just the fact that they don't want people to buy themselves into crypto, and I am glad that at least some people understand that.

That however doesn't mean we should complain about this. If the bank doesn't want anyone to buy crypto on credit, then it's their right to do so. It's a service they offer, where people abide by their policies.

It won't stop people. I can just withdraw money from an ATM and use it to find people nearby and still buy Bitcoin. I can even walk into a banking office and deposit the funds on my bank account and wire it to any exchange.

I am sure they will do like JPMorgan in October, made loud announcements against BTC and then were major buyer of BTC when it dipped. I believe there are POSSIBILITY that they restricted to prevent people from buying BTC, because they want to get it cheap. People were going to use credit cards, because of those dips. And also they can't be sure that BTC will go high, that's why they limited it too.

That's true enough, people are absolutely still okay to purchase crypto with debit cards.  But if these banks and card providers had also taken the opportunity to block credit card payments for things like buying penny stocks in startup companies, depositing funds to online casinos and bookmakers, or other potentially risky financial activities where you can lose everything you just borrowed, that would give greater credence to the notion they're doing it because they cared about their customers and look less like they were just singling out a competitor to their business model.  I should also stress that I'm not advocating they should block access to penny stocks or gambling websites, because again, that should be more to do with personal responsibility and less about gatekeepers telling you what to do.  I'm just highlighting what appears to be a double-standard.  If it were genuinely about protecting consumers, it wouldn't just be crypto being restricted.  There are plenty of people out there who end up in debt because they gambled on credit.

Wake up.. we are on the verge of another serious economic financial cash this should be a warning to everyone the banks are struggling the world markets are on the brink the world is seriously on the brink.

Ask yourself this.. Have the banks stopped you spending money on gambling where there could also be left with the bill? No..

Something is wrong... Very wrong..

Been with Lloyds pretty much my entire life but I'm now considering voting with my feet and leaving.

I've been looking at Monzo (https://monzo.com/) bank. Anyone here using Monzo or got any other recommendations?

I emailed Monzo with a few questions about crypto trading, etc, and received a very favourable reply (in less than an hour!).

Since when have banks been too concerned about their customers spending much money? No, that kind of caring concern is actually uncharacteristic of a bank if you have to study on a deeper level. I agree...it is because Bitcoin can be disrupting their own business model. Have we not said that Bitcoin can be replacing the many services by the banks? Now, these banks are just sugar-coating their press releases which is a common thing in the corporate world.

You should consider leaving. The banks don't give the slightest damn about your loyalty to their business. They only see you as a number in their revenue statistics. If they actually block your credit card from buying crypto, then stop doing business with them. Just move to another bank that will.

Absolutely. I intend to.

I just need to find a crypto-friendly alternative bank. Monzo is looking favourite so far. I was just posting to see what people here thought of Monzo and if anyone has had any experience banking with them.

EDIT: I'm also now considering Starling Bank too: https://www.starlingbank.com

check the news in detail

http://www.marketbazaronline.com/llyods-ban-bitcoin/

I think it is very dangerous to buy the bitcoin with credit card. If the bitcoin does not rise within the interest free period, the buyer is in trouble.

I agree that people shouldn't get into debt to buy cryptocurrencies but using a credit card doesn't necessarily mean that you are spending money you cannot afford to repay. Many people (like myself) use credit cards like debit cards, having funds available to clear the balance immediately, or even to credit the funds to the credit card account before making the transaction.