Wells Fargo: The Latest Bank To Ban Credit-Based Cryptocurrency Buying
Scroll DownWells Fargo is the third largest bank in the United States. They announced on June 11th, according to Fortune, that they would no longer be allowing customers to buy cryptocurrency with their credit cards. Wells Fargo initiated a statement explaining that customers are banned from purchasing cryptocurrency with any credit card issued from the bank. The reason for the decision: reducing the risks that come with using, buying, and selling cryptocurrency. The spokesperson did add that the company would be willing to revisit the issue if the market changes. Wells Fargo isn’t the first financial institution to ban cryptocurrency. Other financial institutions including Bank of America, Citigroup, and J.P. Morgan Chase prohibited customers from buying cryptocurrency in February. A spokesperson from J.P Morgan Chase said that payment processing and other services in the crypto world is risky for banks. It seems to be standard practice for other banks to follow suit to protect their interests along with those of their clients who trust them with their accounts and investments. The number of banks in the world banning involvement in the crypto market is expanding. Toronto-Dominion Bank (TD), which is one of the largest banks on the continent, told customers through e-mail that they were not allowed to buy cryptocurrency with their credit cards. Their reasoning was similar to what other banks said. They feel that banning crypto purchases will help protect both the bank and its customers. It wouldn't be surprising to see other banks in the country follow in the footsteps of TD since meddling in the crypto world can be dangerous due to the lack of regulation by any central body. HDFC Bank, the largest private bank in India, told its clients that any credit or debit cards issued through them cannot be used to buy cryptocurrency due to the risks that come with it in the interest of protecting customers. Lloyds Banking Group, the largest bank in the UK, implemented similar policies as did Virgin Money, which has a global presence with branches in South Africa, the UK, and Australia. Time will tell how other banks respond to the crypto trend.
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