Ban on Crypto-Currency purchases through Credit Card by JPMorgan & BofA
On Friday, JPMorgan & Bank of America, one of the world’s largest bank, said they were halting the purchase of Crypto currency through Credit Card. The ban would be enacted from Saturday (3rd February 2018).
The reason stated by banks are the high volatility of Crypto currency, can lead to bad credit rating for the banks.
Allowing purchases of cryptocurrencies can create big headaches for card lenders, which can take a turn for worse if a borrower bets wrong and can’t repay. Plus the number of exchanges security flaws, increases the risk of Credit card details being stolen. 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.
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