LLOYDS Banking Group has become the first UK bank to ban its credit card customers from buying Bitcoin.

The bank is concerned that it could be left with huge debts if Bitcoin suffers a severe drop in value and its customers are then unable to pay back money owed.

The ban will apply to accounts with Lloyds Bank, Bank of Scotland, Halifax and MBNA.

The bank also expressed concerns that Bitcoin was being used by fraudsters and money launderers to anonymously move money around.

“Across Lloyds Bank, Bank of Scotland, Halifax and MBNA, we do not accept credit card transactions involving the purchase of cryptocurrencies,” a spokesman said.