Capital One
banned credit card purchases of cryptocurrencies last month, and Discover has had a ban in effect since 2015.
The switch coincided with several banks» decisions to
ban credit card purchases of cryptocurrency, which may have triggered direct debits from customers» accounts instead.
Not exact matches
Bank
of America cited anti-money laundering concerns as part
of its decision to
ban its
credit card customers from
purchasing cryptocurrencies, as well as the possibility that thieves might attempt to use stolen
credit cards to
purchase cryptocurrencies.
Some
of the
credit card companies
banning their customers from
purchasing cryptocurrencies include JPMorgan Chase, Bank
of America, Citi, and Capital One.
Coinbase had previously announced to its customers that several large US banks had either changed the way they were processing
credit card purchases of cryptocurrencies or were
banning their cardholders from using their
credit cards to
purchase cryptocurrencies.
As a result,
credit card companies around the world started
banning the
purchase of cryptocurrency using
credit cards.
Nonetheless, recently, big banks around the world have been
banning the
purchase of cryptocurrency using their
credit cards.
Earlier in February, a group
of United States and United Kingdom - based banks announced they were
banning cryptocurrency purchases on their
credit cards.
The news from India added to the existing pessimism in the
cryptocurrency market on account
of China's announcement
of blocking foreign crypto exchanges, and the move by major banks such as JP Morgan Chase, Citigroup, and Bank
of America from the US and Lloyds Bank from the UK to
ban cryptocurrency purchases via their
credit cards.
The move came just days after Bank
of America, JP Morgan Chase, Citigroup and several other major financial institutions
banned cryptocurrency purchases with their
credit cards due to the volatile nature
of virtual money.
From the
credit card providers» point
of view, it's easy to understand why the decision to
ban cryptocurrency purchases has been made.
Capital One Financial and Discover have followed suit,
banning all
cryptocurrency purchases with their
credit cards, with Discover CEO David Nelms describing virtual money users as «crooks... trying to get money out
of China or wherever.»
According to Bloomberg, the banks have
banned cryptocurrency purchases with their
credit cards due to the volatile nature
of virtual money.
The decision to
ban cryptocurrency purchases with certain
credit cards follows the sharp decline virtual coins have suffered after going through the roof at the end
of last year.
Cryptocurrency enthusiasts hope that once banks understand the incredible opportunities that Bitcoin offers, they will stop banning the use of their credit cards for cryptocurrency purchases and will abandon other similarly unf
Cryptocurrency enthusiasts hope that once banks understand the incredible opportunities that Bitcoin offers, they will stop
banning the use
of their
credit cards for
cryptocurrency purchases and will abandon other similarly unf
cryptocurrency purchases and will abandon other similarly unfair practices.
Several major banks, including JP Morgan Chase, Citigroup, and Bank
of America, prohibited the use
of credit cards for
purchasing digital currencies, while South Korea recently
banned unknown
cryptocurrency trading accounts.
The Bank
of America
ban is limited to
credit cards, and will not impact customers who wish to
purchase cryptocurrencies using debit or ATM
cards, according to the news source.
A number
of financial institutions have now
banned the use
of credit cards for
purchasing Bitcoins, meaning potential investors will need to resort to other means to
purchase their
cryptocurrency.
Three
of the most important banks in the United States have decided to
ban cryptocurrency purchases on
credit cards.
JPMorgan Chase & Co., Bank
of America Corp. and Citigroup Inc. all announced a
ban on
purchases of Bitcoin and other
cryptocurrencies on their
credit cards.