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Growing number of US banks ban Bitcoin purchase on all types of credit card

Bank of America started declining credit card transactions with known crypto exchanges on Friday

Jennifer Surane & Laura J Keller | Bloomberg 

Bitcoin

A growing number of big issuers are deciding they don’t want to a falling knife. Chase & Co, and said they’re halting purchases of and other cryptocurrencies on their JPMorgan, enacting the ban Saturday, doesn’t want the credit risk associated with the transactions, company spokeswoman said. started declining transactions with known crypto exchanges on Friday.

The policy applies to all personal and business credit cards, according to a memo. It doesn’t affect debit cards, said company spokeswoman And late Friday, said it too will halt purchases of cryptocurrencies on its “We will continue to review our policy as this market evolves,” company spokeswoman said. Allowing purchases of cryptocurrencies can create big headaches for lenders, which can be left on the hook if a borrower bets wrong and can’t repay. There’s also the risk that thieves will abuse cards that were purloined or based on stolen identities, turning them into crypto hoards. also are required by regulators to monitor customer transactions for signs of money laundering — which isn’t as easy once dollars are converted into digital coins. has lost more than half its value since December 18, falling below $8,000 on Friday for the first time since November. The drop occurred amid escalating regulatory threats around the world, fear of price manipulation and Facebook’s ban on ads for cryptocurrencies and initial coin offerings. Now, cutting off card purchases could exacerbate those pressures by making it more difficult for enthusiasts to buy into the market. and Discover Financial Services previously said they aren’t supporting the transactions.

First Published: Sun, February 04 2018. 00:49 IST
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