A number of largest banks in the United Kingdom and the USA, including Lloyds Banking Group, Virgin Money, J.P. Morgan Chase, Bank of America, and Citigroup, are no longer allowing customers to use credit cards to buy cryptocurrencies.
Why did they do that?
The ban is at discretion of each financial institution and comes after the losses that the crypto markets have experienced this week. Bitcoin, in particular, dropped below $7K for the first time since December. Explaining the new limitation, all banks are quoting the review of the internal policies.
So how do I buy crypto now?
If you are a client of any of the banks mentioned above, you can still buy cryptocurrencies using your debit card. Also, not all the banks joined the initiative – for example, Barclays, another leading British bank, still allows to buy crypto with both debit and credit cards.
What can we learn from that
- Banks saw the need to protect the customers from the high risk of cryptocurrencies fluctuation.
- The trend in crypto markets correlates with the slump on traditional markets, with the Dow Jones Industrial average down over 1,100 points and the S&P 500 Index losing its January gain.