The San Francisco based bank, Wells Fargo, announced recently that the purchase of cryptocurrency with their credit cards will no longer be allowed.
Wells Fargo is the third largest bank, by assets, in the United States, and recently reported
that their customers are prohibited from any crypto-activity, using their credit cards. A bank spokesman regarding the decision, which was made to avoid “multiple risks” associated with cryptocurrencies –
“Customers can no longer use their Wells Fargo credit cards to Buy Cryptocurrencies. We do this to be consistent throughout the Wells Fargo company due to the multiple risks associated with this volatile investment. This decision is in line with the industry in general”.
Wells Fargo now joins the growing list of financial institutions that prohibit the purchase of cryptocurrencies with their credit cards. In February, Chase, Bank of America and Citigroup announced that they will not allow the purchase of cryptocurrencies by credit card. Chase issued a statement in regards to their decision saying that they have done so,
“To face the risk that the processing of payments and other services may Be Affected by technologies such as cryptocurrencies”
This scenario is not limited to banks in the United States. In Canada, Toronto-Dominion Bank (TD), one of the largest banks in North America, announced the prohibition of their customers to purchase cryptocurrencies with their credit cards. TD Bank issued a statement saying,
“The measures were taken to serve and protect our customers, as well as the bank”
Similarly, HDFC Bank, in India, has announced the same conditions, prohibiting the purchase of cryptocurrencies through their credit cards. These restrictive measures were supported by the the United Kingdom’s, Lloyds Banking Group, as well as Virgin Money, in Australia, South Africa and the United Kingdom.
by Samuel Paz
