The UK banking group Barclays confirms that its customers will be allowed to purchase cryptocurrencies using credit cards meanwhile Virgin Money banned.
Barclays bank has not blocked the purchase of cryptocurrencies with credit cards as is the case with other large banks in the U.S that have stopped the purchases. It is also contrary to strategy by Lloyds Banking and Virgin Money, which just halted the purchases.
Barclays will instead take precautions such as assessing affordability before extending credit to customers and flagging or preventing suspicious transactions according to a bank spokeswoman. They will also monitor credit risks.
The Barclays spokeswoman stated:
“We take precautions to assess affordability before extending credit, flag and prevent any suspicious transactions. However, we also closely monitor credit risk.”
While, Virgin Money, the Edinburgh-based financial service company is the latest to stop crypto purchases with credit cards. Thus, it claims that it would prevent customers running up debts during volatile markets. Lloyds gave the same argument when halting the purchases. Other credit card issuers that have so far stopped the buying of cryptocurrencies with credit cards include Bank of America, JP Morgan, Citigroup, Capital One and Discover.
It is not clear whether the ban by Virgin Money affects its entities in UK, South Africa, and Australia.
A spokesperson stated:
“Following a review of our policies, I can confirm customers will no longer be able to use their Virgin Money credit card to purchase crypto-currencies.”
However, the ban despite against credit cards cryptocurrency purchase in which customers can still buy using credit cards. Richard Branson founded the issues as a subsidiary of the Virgin Group famed support for cryptocurrencies.
Branson continually lauded cryptocurrencies, stating that:
“Bitcoin is creating an entirely new form of currency. I was happy to see PayPal announce they will integrate BitPay into their website. And we are also accepting Bitcoin on Virgin Galactic”.
Credit cards are still used in gambling in U.K., for instance, whose risks are worse than crypto trades.