Lloyd's Banking Group will prohibit cryptocurrency purchases with credit cards

Several banks, including British Lloyd's Banking Group will block credit card users from purchasing Bitcoin
05 February 2018   277

Telegraph reports that British Lloyd's Banking Group will block any cryptocurrency-related operations with credit cards.

The Company's spokesperson further announces:

"Across Lloyds Bank, Bank of Scotland, Halifax and MBNA, we do not accept credit card transactions involving the purchase of cryptocurrencies"

The block will not affect debit cards, but credit card users won't be able to perform any transactions involving cryptocurrencies and Bitcoin in particular. Banks fear that people will increase their debts just to try for a quick profit in crypto-related field. And the Lloyd's Group is the first to officially announce that the don't want to finance the impending fallout.

According to the reports, last year thousands of Brits rushed to buy Bitcoin during the lengthy bull-run which sent prices skywards. Even the government made the report at that time to warn people of risks involved and to try and stop people from rushing headlong into the unknown. Now everything points to the events repeating themselves and banks can't sit idle.

Even across the Atlantic three major US banks take the same stance, trying to stop the upcoming tide. JP Morgan Chase & Co., Citigroup Inc. and Bank of America Corp. have take the similar stance and announced that they will or already are blocking cryptocurrency-related transactions made with credit cards. All of this can cause further price drop, because it just became a little more difficult for the common folk to enter the cryptomarket.

It's very likely that other banking institutions will follow the trend in the near future and cut off credit card users from Bitcoin purchases.

First real-life cryptocurrency robbery reported in Taiwan

Four men stole 5 million Taiwanese dollar worth of Bitcoin, the police has already arrested the suspects
22 February 2018   57

Bitcoin has attracted lots of unwanted attention from hackers and scammers alike. Recently not a week passes without news of an exchange or user being hacked or some company's computers being hijacked to mine cryptocurrency. And now Taiwanese news outlets report first real-life robbery of Bitcoin in their country.

The robbery took place in Taichung, Taiwan's central city. The police reports three men being involved in the robbery itself and one as a planner. Criminals persuaded the victim to meet with them face-to-face under the guise of being interested in buying Bitcoin from him. After the victim showed the robbers the proof of his bitcoins on his phone, the men attacked him and his friend and transferred 18 bitcoins worth 5 million Taiwanese dollar via the phone wallet.

The suspects then forced the unfortunate seller to drink strong local liquor to make everything look like a drunken fight had taken place. The police arrived at the scene after receiving the reports of a fight and found two victims. Two of the offenders had fled, but the third has been arrested at the scene of the crime. He later provided investigation with information about his accomplices. They were arrested soon after.

The police later apprehended the man believed to be the mastermind behind the plan. All this was released in the yesterday's report by the Taiwanese law enforcement and the case is already viewed as “the first domestic case of bitcoin robbery”. The report doesn't mention if the crypto was returned to the rightful owner.

Similar cases has been rumored to happen in the US, but no records are released as of yet. So the unofficial governmental advice is to be more cautious of the buyers requesting face to face meetings in the light of this event.