UK banks ban crypto purchases on credit cards

[mekie]

The link below is to a BBC news item, briefly some UK banks have band users from buying cryptocurrencies with their credit cards, but will at the moment still allow with debit cards.

http://www.bbc.co.uk/news/business-42940728

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[gentlemand]

This makes sense. For starters they must've had mountains of scamming and chargebacks. On top of that there must be no shortage of morons who'll stock up on crypto only for it to fall through the floor leaving giant debts. Then again why do they allow gambling?

No doubt it'll be framed once again as 'banksters attack' but it's a pragmatic move more than anything. I'm wondering where people were buying though. I don't really know of anywhere but I'm not paying much attention any more.

[Fondago]

Now in many countries, not only in UK, people open a credit line to buy BTC, because there is a real chance to buy and wait when it goes to the moon again. Due to this, banks are in panic (little bit), but they will not fight against BTC, and there is no point in this. World has a lot of services that accompany the transfer / payment in electronic form.

[Clement Kaliyar]

Now in many countries, not only in UK, people open a credit line to buy BTC, because there is a real chance to buy and wait when it goes to the moon again. Due to this, banks are in panic (little bit), but they will not fight against BTC

What do you mean by the bank will not fight against bitcoin,the banks have already banned the use of credit cards to purchase crypto currency and that includes bitcoin,  with the price going up to $20k and now coming down to well below $8k is a huge difference and the banking system is afraid that the users will mess with their card investing in crypto to earn a quick profit and getting stuck.

[AssiZichlinski]

The world is still at an early stage of crypto adoption. This type of preventative measures reflect real fears of banks worldwide - both of the existential threat that bitcoin represents, but also of the short term fears of the volatility of the crypto investments (they don't want people defaulting on their credit). The good news is that such early measures are part of a natural progression: it is clear that cryptocurrencies are here to stay (and that they will have a dramatic influence on our economic world). As such, as the fears subside and people start viewing the currencies responsibly, more sane policies will arise.

[tung06081989]

now many bank ban crypto but in the futue,crypto will be  admited,crypto is changing the world

[Taltic]

Banning the purchase of the crypto with credit card is I think just to protect the people, so less problems banks will have to deal with. And less money will flow from banks to crypto so it's logical too if you think about it. But banning such things are just a big effort with small result. You can buy equipment with money from credit card and then what!?
It's just a postponement of the inevitable.

[pawel7777]

...but will at the moment still allow with debit cards.

Banning credit card purchases is somehow justified, as those are bank's money, not yours - it's a form of a loan, if they don't like the purpose of the loan - they can say "no". They couldn't impose such ban for debit cards (as long as cryptocurrency is not delegalised), it would be as ridiculous as bank forbidding you to buy certain food products, certain newspaper etc.

[marielbeckham]

It's quite interesting indeed how long this may last. Or what the next obstacle may turn out to be?

[xdrpx]

If a customer of Lloyds Banking Group also registered a Debit card under the same account, then I guess theres no problem at all. Lloyds actually doing something good to benefit investors from making poor investment decisions and risking more than the amount that they can risk losing. Recovering from debt is very difficult and may affect one's financial and psychological situation. When compared to banks in certian parts of US and Asia completely making their customers to disown any transactions with 'Bitcoin' or cryptocurrencies in general, the decision made by Lloyd's group has some good purpose and their intent makes sense. Normally, the banks in Asia will send you a letter or phone you up to either warn you or close your account if they find repeated transactions involving buying/selling of cryptocurrencies. I guess people can still buy with cash, debit cards [without any interest] and National Bank transfers.

The statement mentioned towards the end of the article makes perfect sense. The bank lends you money and they play a role in deciding if you make safe investments and also make good returns.

After all, you're buying on credit, so it's the bank that stands to lose if you can't repay the debt.

[pawel7777]

If a customer of Lloyds Banking Group also registered a Debit card under the same account, then I guess theres no problem at all. Lloyds actually doing something good to benefit investors from making poor investment decisions and risking more than the amount that they can risk losing.
...

They try to spin it this way, but how does this make any sense when they have no problem with you spending your entire limit on booze/hoes/gambling, but want to "protect" you in case of BTC price drop.
The purpose of credit cards is to provide you with a quick (instantly approved) loan option. The limit they set for you should be based on your income and credit score and should be low enough to make it possible for you to pay off your debt even if you splash it all out by impulse buying. So there shouldn't be a need for a 'nanny' approach.
The other thing is, before the credit crunch, UK banks were giving away credit cards like candy, with limits often exceeding customers' abilities.

[countryfree]

I understand the banks but I wonder how they will proceed to manage that ban. I mean that if you buy BTC from an exchange called Sagittarius Corp., how will the bank know that this company is an exchange, and not a restaurant or whatever?

Do the banks keep a list of all exchanges all around the world?

[xankor]

Maybe banks feel dangers so they ban crypto purchases on credit cards

[avoxosuccesful]

the question is those credit card harkers would they be able get  into your wallet with the card if missing,what security is provided  for the card.

[Temik2704]

Now in many countries, not only in UK, people open a credit line to buy BTC, because there is a real chance to buy and wait when it goes to the moon again. Due to this, banks are in panic (little bit), but they will not fight against BTC, and there is no point in this. World has a lot of services that accompany the transfer / payment in electronic form.

It is not good idea to buy BTC on a credit, especially if banks have high interest rates. For example, In Russia, standart credit rate is 13-17% per year (in RUB). I have a friend who did such mistake (bought BTC on a credit at rate 18k$ per BTC ) and now he is in panic.

[futureofeth]

Not only the UK there are many other countries banning the Bitcoin purchases through credit and debit cards. Their main is banks don't have any control over those and people are buying from the third parties, so banks are jealous about this purchases and blocking the purchases through cards.