Citi and Bank of America limit cryptocurrencies access

Bank of America, Citigroup, and some additional consumer-facing lenders are reportedly considering preventing their customers from using credit cards issued by the firms to buy cryptocurrencies. While it’s not clear exactly how or when these institutions would put these policies into place, the decision could result in a new set of restrictions and limits surrounding the purchase of crypto.

Bank of America explained simply that the bank was “reviewing its policies” regarding cryptocurrency; Citigroup is “[continuing] to monitor this evolving space,” although no official policy changes are underway.

Over the last two weeks, reports have emerged of banks all around the world taking steps to crack down on customers using credit cards, debit cards, and wire transfers to purchase cryptocurrencies.

Capital One Financial Corporation has placed a ban on the use of its credit cards to purchase cryptocurrency, taking a ‘bank knows best’ attitude; the reason for the ban was explained as an effort to limit “mainstream acceptance and the elevated risks of fraud, loss, and volatility.”

Some mortgage-lending firms are also denying loans to customers who have earned money through cryptocurrency.

Danish bank Nordea has even gone so far as to ban its 31,000 employees from owning any cryptocurrency at all, a move that many consider to be a violation of workers’ rights.“It is clear that employees should not speculate on something that is criminal. But that’s not the case for bitcoin, as it seems at this time. We think that a ban is being made without a legal basis.”

Source: Finance Magnates

Trader Bozhidar Arabadzhiev

Original post: Citi, Bank of America, and More May Limit Customer Access to Crypto

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