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.
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.