Coinbase Confirms 4 Banks Blocking Bitcoin Credit Card Purchases

Credit card holders from four U.S. banks have been barred from purchasing cryptocurrencies using credit cards at Coinbase, the exchange has confirmed.

According to the firm's latest tweet, credit card users from JPMorgan Chase, Bank of America, Citi and Capital One are all currently prohibited from purchasing cryptocurrencies at the platform.

However, other payment channels such as debit cards and bank transfer are still available, and are being encouraged by Coinbase as alternatives for affected customers.

The notice came as a confirmation to a recent report that Chase, Bank of America and Citi had launched the ban starting in early February over fears that credit card users may run up debt if the prices of cryptocurrencies drop. It further indicates that the restriction also extends to Capital One, another major credit card issuer in the U.S.

This news also arrives amid a major price correction across the crypto markets in the last few weeks. According to CoinDesk's latest report, bitcoin's price has dropped to a 12-week low around $6,000. On the same date in January, prices were closer to $17,000.

Data from CoinMarketCap also indicates that the total cryptocurrency market capitalization slumped today to under $300 billion for the first time since Nov. 25, 2017.

The trend to bar bitcoin buying with credit cards is not just being seen in the U.S. market.

As reported yesterday, British banking group Lloyds has also reportedly blocked card holders from several of its major subsidiaries – including Halifax, MBNA and Bank of Scotland – from purchasing bitcoin on credit.

Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in Coinbase.

Credit cards image via Shutterstock