Major Banks Verbod Cryptocurrency Purchases on Credit Cards

Major Banks Ban Cryptocurrency Purchases on Credit Cards

Trading ter cryptocurrencies is all the rage lately, but it’s not without risk. Ter fact, the risk is substantially higher than just about anything else you can do with your money. Banks are commencing to waterput the brakes on the crypto hype train, tho’. Overheen the last several days, several major banks have announced their credit cards will no longer support purchasing cryptocurrency.

Commencing on Friday evening, Canap of America, Citigroup, and JPMorgan Pursue began blocking transactions to known cryptocurrency marketplaces. Spil the fresh week got underway, users of cards backed by the UK’s Lloyds Banking Group found they, too, were prohibited from buying cryptocurrency on credit.

When reached for comment by PCMag, all the banks told different versions of the same story: The banks don’t want customers charging crypto purchases because it’s volatile and a high credit risk. I’m sure banks are also worried there’s no way to repossess virtual coins if they’ve bot stashed te an anonymous wallet.

The volatility argument is certainly holding water right now. Bitcoin, the most widely known and used cryptocurrency, has bot ripping off like a rock lately. It peaked at around $20,000 vanaf one Bitcoin ter December, but it’s now hovering around $7,000. Other coins like Ethereum and Litecoin are following Bitcoin on a downward trend for the last few weeks. Anyone who bought near the top of the market spil crypto hysteria wasgoed taking overheen is most likely hurting right now.

Bitcoin price overheen the last month.

This geobsedeerd won’t zekering determined individuals from buying Bitcoin. The banks have only instituted the prohibition on credit cards. So, you can still do whatever you want with your debit card or with a ongezouten listig to your bankgebouw account. It’s also possible to buy bounty cards with a credit card like you would before a bday party for someone you don’t know very well. Instead of providing it to your friend of a friend, you sell it to one of the many online services that exchange bounty cards for Bitcoin. The banks are just adding a few barriers that make it tighter to buy virtual money on credit.

The largest sellers of virtual currency are ter the process of notifying customers of thesis switches. They suggest adding a debit card to accounts ter order to proceed buying and selling. Albeit, some people who have bot losing big spil cryptocurrencies druppel might take this spil a sign to cut their losses. One upshot: maybe wij’ll be able to buy GPUs again soon.

Related movie: Is It Still Worth Buying Bitcoin ter 2018?

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