Wells Fargo Bans Cryptocurrency Purchases with its Credit Card
June 12, 2018 2:52 pm
US Bank Wells Fargo says it will no longer Allow Purchase of Cryptos on its Credit Card
Wells Fargo, which is the third biggest bank by asset in the US, stated that its customers are now banned from buying cryptocurrencies on their credit card issued by the financial institutions.
A bank representative told that the decision was made in order avoid “multiple risks” linked with digital currency usage:
“Clients can no longer use their Wells Fargo credit cards to buy cryptocurrency. We’re doing this in order to be consistent across the Wells Fargo enterprise due to the multiple risks linked with this unpredictable investment. This choice is in line with the overall industry.”
Still, the representative added that the bank “will continue to evaluate the issue as the market evolves.”
With this, Wells Fargo joins a wave of financial institutions prohibiting the purchase of digital currency with their credit card. In February, three banking giants Citigroup, J.P. Morgan Chase, and Bank of America declared that they would no longer allow buying of digital currency. Later that month, J.P. Morgan Chase told that financial institutions could “face the risk that technologies, such as cryptocurrencies could disrupt payment processing and other services.”
The list of banks which prohibits customers from purchasing cryptocurrencies with their credit card has been rising globally. In Toronto – Dominion Bank (TD), one of the biggest bank in North America, declared in an email statement to clients that it is prohibiting the purchase of digital currency with credit cards. The bank told the measure were taken “in order to serve and protect our clients, as well as the bank.”
India’s HDFC Bank, the nation’s one of the biggest private bank, informed customers that its debit and credit card couldn’t be used to purchase digital currencies to protect clients. UK’s largest bank likewise supported restrictive measures, Virgin Money and Lloyds Banking Group, which is present in UK, Australia, and South Africa.