Big American Banks Ban Cryptocurrency Purchases on Credit Cards

With the recent volatility realized for the crypto space, many banks are now hesitant to allow their customers to buy into it, thinking that it’s a scam. Some of the largest banks in the world (Bank of America, Chase, and Citigroup) have restricted purchase of crypto using credit cards.

At this time, we are not processing cryptocurrency purchases using credit cards, due to the volatility and risk involved. We will review the issue as the market evolves.

Ok most people didn’t invest their credit line into crypto, as far as I could tell. If that were the case, I would have opened up my student loans again and take out of my mortgage and everything because there is a huge sale going on right now.

I saw this coming, since India is getting skeptical, and Capital One also banned credit card purchases of crypto several weeks ago. In fact, Discover saw this coming in 2015 and had the same ban since then.

Bloomberg came out with this statement:

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. Banks 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.

Thanks Bitconnect. Either way, I don’t think this whole crypto space is a scam, and I think it’s going to go back up within the next 2 to 3 months as it always does. All this fake news can go mind its own business.

Now if you’ll excuse me, I’m going to go get some credit cards at banks who didn’t ban crypto purchases.