Here’s another blow for the crypto-enthusiasts: A sizable number of banks are not allowing their customers to use their credit cards (or even debit cards) to buy cryptocurrencies.
Here’s another blow for the crypto-enthusiasts: A sizable number of banks are not allowing their customers to use their credit cards (or even debit cards) to buy cryptocurrencies. This was triggered when U.S. banks Bank Of America, Citigroup, JP Morgan, Capital One and Discover banned their customers from purchasing cryptocurrencies citing market volatility.
Here are the 5 Banks that have disallowed its users from trading cryptocurrencies
In recent news, Citibank disallowed buying and trading of cryptocurrencies in India (through debit and credit, both). In an email to all its card holders in India, citigroup stated– given concerns, both globally and locally including from the Reserve Bank of India, cautioning members of the public regarding the potential economic, financial, operational, legal, customer protection and security related risks associated in dealing with bitcoins, cryptocurrencies and virtual currencies, Citi India has decided to not permit usage of its credit and debit cards towards purchase or trading of such bitcoins, cryptocurrencies and virtual currencies.”
Bank of America
In January, Merrill Lynch (brokerage arm of Bank of America) banned all its financial advisors from trading in Bitcoin for their clients because it was “too much” of a risk for investors. This memo was circulated among 17,000 financial advisors.
Lloyds Banking Group
It is the first bank to ban its users for crypto trading in the United Kingdom. They banned all its credit card from buying cryptocurrencies as it fears it could be left in debt as the value of cryptocurrencies deflate.
In a statement they stated that across Llyods Bank, bank of Scotland, Halifax and MBNA, they will not accept credit card transactions involving the purchase of cryptocurrencies.
January was marked to be the black month for crypto traders. Discover bank card holders were seen posting questions on online forums, if any exchange accepted their credit cards. The answer was quite obvious after Discover bank CEO stated that they’re banning all its users from trading in cryptos through its credit cards, He further added that digital coins are attractive to criminals looking to hide illicit funds and to other people trying to evade the government’s eye.
Capital One bank
The bank has blocked all its holders of credit cards from using them for cryptocurrency purchases. The bank in a statement quoted, “Capital One is currently declining credit card transactions to purchase cryptocurrency due to the limited mainstream acceptance and the elevated risks of fraud, loss, and volatility inherent in the cryptocurrency market. Capital One continues to closely monitor developments in cryptocurrency markets and exchanges and will regularly evaluate the decision as cryptocurrency markets evolve.”