Challenger bank Virgin Money joins Lloyds with a ban on bitcoin credit card purchases

Courtney Goldsmith
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Virgin Money is the first challenger bank to make the ban
Virgin Money is the first challenger bank to make the ban (Source: Getty)

Challenger bank Virgin Money has banned the purchase of cryptocurrencies like bitcoin on its credit cards, joining the likes of Lloyds Banking Group and US investment banks.

A spokesperson said the decision came after a review of its policy, but it only applies to Virgin Money's credit cards, not its debit cards.

Lloyds' ban comes into effect today across all of the UK banking giant's brands amid a huge cryptocurrency sell-off. Banks are becoming worried that they will be left on the hook for steep losses if cryptocurrencies continue to swing lower.

It followed similar moves by JP Morgan Chase, Bank of America and Citigroup late on Friday.

However, other big British banks today declined to follow Lloyds' lead, saying they currently have no plans to tighten regulations on the volatile assets.

Bitcoin hit its lowest price since November today, falling below $7,500.

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