Big US Banks Ban Credit Card Purchases of Cryptocurrency

bitcoin_ban_cryptocurrency_us_banksAccording to a report by Bloomberg, Three of America’s largest banks have announced they’re freezing cryptocurrency purchases on their credit cards. The banks are JP Morgan Chase, Bank of America and Citigroup.

While JP Morgan announced the ban on Saturday, Bank of America had begun declining credit cards on exchanges by early Friday. By late Friday, Citigroup also made a similar statement. All banks say they will not support the risk taken on by Cryptocurrency investments. This ban, however, doesn’t include purchases made with debit cards. So debit card holders with these banks can continue to buy and sell Bitcoin as well as other cryptocurrencies.

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Due to the volatility of cryptocurrency prices, banks and other lending institutions will try to reduce the risk of their customers by totally cutting off the exposure to crypto or reducing it as much as they can. This move, however, makes it more difficult for enthusiasts to begin to trade.

We’ll keep watching the markets worldwide as more governments and institution react to Bitcoin investments and other cryptocurrency uses.

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