Cryptocurrency Purchase Banned Using credit cards: US Bank Wells Fargo
Wells Fargo is the third largest bank in the US. The announcement from the bank says their customers cannot buy cryptocurrency or any other digital money using their credit card issued from the financial institution. This decision was made by the spokesperson of the bank to avoid “multiple risks” which are linked with cryptocurrency usage. He stated:
“Customers can no longer use their Wells Fargo credit cards to purchase cryptocurrency. We’re doing this in order to be consistent across the Wells Fargo enterprise due to the multiple risks associated with this volatile investment. This decision is in line with the overall industry.”
However, the spokesperson further added that the bank “will continue to evaluate the issue as the market evolves.”
With this step, the Bank of San-Francisco has joined the group of financial institutions banning the purchase of cryptocurrency with their credit cards. In the month of February banks like J.P. Morgan Chase, Bank of America, and Citigroup banned using their credit cards buy digital money. Later in the same month, J.P. Morgan Chase said financial institutions may “face the risk that payment processing and other services could be disrupted by technologies, such as cryptocurrencies.”
The list of banks which are restricting customer to buy cryptocurrency from credit cards are growing globally. Another bank which issued a ban is the Canadian Toronto-Dominion Bank (TD), one of the largest banks in North America. They announced in an email statement to customers that it is banning the purchase of cryptocurrency with credit cards. The bank said the measures were taken “in order to serve and protect our customers, as well as the bank.”
India’s largest private bank, HDFC has instructed its customers that its debit and credit card cannot be used to purchase cryptocurrency in order to safeguard their customers. These kinds of measures were also supported by the largest UK bank, Loyds Banking Group, and Virgin Money, which is present in Australia, South Africa and the UK.