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However, across the Atlantic a number of big US banks have taken preventative measures, with JP Morgan, Bank of America and Citigroup all halting Bitcoin purchases.

A growing regulatory backlash against the digital coins has sent investors scrambling to sell this week.

A spokesman for the bank told the Telegraph it had taken the measure to 'protect' its clients.

Lloyds, which has 30million customers, is the first British bank to ban Bitcoin.

Last year's explosive rise in the value of digital coins and the flood of new retail investors drawn to the market have rattled global regulators nervous about a sector used largely for speculation.