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Regions Financial Corporation has barred its customers from purchasing cryptocurrencies such as bitcoin. The entities had announced last year that they would halt credit card transactions involving cryptocurrencies. Before that, Discover and Capital One had also initiated a similar action against the cryptocurrency users.
The news created enough bad press for the nascent sector, which was already crashing hard at that time. Regions Bank blocked all kinds of deposit account holders — be it savings or current — from accessing cryptocurrency markets. APompliano March 28, That said: if a person who is merely using a banking service for storing his own money, he cannot withdraw his funds to invest in crypto assets.
That practically leaves him with the choice of rejecting the banking service altogether and switch to a bank that caters to his requirements. The former Bank of America customer moved all his funds out of their account as a sign of protest.
I encourage everyone to do the same as they begin to block us more and more and let them know why. Banks are intended to hold our money not decide where and when we spend it. Against the common notion that banks are bitcoin-haters, the reason why these multi-billion corporations want to stay away from crypto is simple: to avoid legal backlashes. When investigators study such crimes, they follow a trail of money.
Therefore, whoever comes in the path, it gets questioned for its role in making the crime happen. Bitcoin is leading crypto markets back into the green again today but they have a long way to On Monday and Tuesday, the leading cryptocurrency All Rights Reserved.
Crypto Credit Lines Sponsored. Bitcoin Crypto 2 mins. Davit Babayan 9 months ago. APompliano March 28, That said: if a person who is merely using a banking service for storing his own money, he cannot withdraw his funds to invest in crypto assets.
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Apparently, the […]. Global bank HSBC has processed more than 3 million foreign exchange fx transactions using blockchain technology. The popular digital currency exchange, Bitfinex has reportedly stopped its USD deposits to their exchange. This news comes after last weeks, several rumours that the exchange was broke which made management forced to step up and deny the rumours that they were not bankrupt. The Hong Kong central bank has announced that its official launch next month will include a blockchain-built trade finance platform for logging transactions and credentials, which will therefore be immutable. The platform is expected to minimize the time and paperwork required in trade finance and supply-chain finance transactions. Ripple has found a competitor in the payments space, with a platform known as we.
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Multiple banks around the world have announced plans to block bitcoin purchases on their credit cards. These include purchases that would be made on cryptocurrency exchanges with the intention of acquiring the investment option in general. The bans are specifically made with the bitcoin in mind, but they may also carry over to other cryptocurrencies on the market. The move comes as many investors are using credit cards to work as leverage for buying the bitcoin. The leverage often makes it easy for people to spend more on their bitcoin investments than what they can afford to handle. Banks are expressing a concern that the purchases can result in unsecured debts that may be extremely difficult for some to actually pay off, a problem that may be greater if a currency declines in value.
No, It’s Not the Bitcoin Hate
It just got harder to bet on the bitcoin rollercoaster. The decision comes as bitcoin continues to give investors acute vertigo. It gained 1, percent insparking widespread interest and demand. Some what banks block bitcoin purchases were so determined to get in on the action they bought the cryptocurrency with a credit cardrather than actual cash or an ACH transfer from a savings account.
This year has been a disaster for bitcoin, as the price dropped by half. The only thing more expensive than backing the wrong horse is borrowing money to back the wrong horse. LendEDU, a student loan marketplace, surveyed nearly bitcoin investors in December and asked how they paid for their investment. Another 18 percent, though, said they used a credit card. More than a fifth of what banks block bitcoin purchases respondents said they carried credit card balance as a result of their purchase.
And who knows what will happen to the price of bitcoin over that six-year period. Legislators and regulators in Washingtonor South Koreacould introduce rules that dry up demand for the cryptocurrency. A better competitor may emerge. To break even, your bitcoin investment will need a compound annual growth rate of 6. If you feel passionately about the potential for non-governmental currency, and believe bitcoin or another cryptocurrency could upset the financial system and reorient how we all make payments, gamble with no more than five percent of your portfolio.
You should not be afraid to see this portion drop to zero. With the other 95 percent, be boring. Invest in diversified, low-cost index funds, and plan on staying in for the long haul. But whatever you do, never take on credit card debt to make any investment, especially in one as speculative as bitcoin. The banks made their decision for purely self-interested reasons, but they may have done you a favor.
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The change in the merchant category code for cryptocurrencies was an indicator for forward-thinking investors that a crackdown was on its way. The government started by blocking initial coin offerings, which are often referred to as ICOs. Banks that explicitly ban or limit bitcoin purchasing Name Country Note Bank of America United States Bank-issued credit cards and lines of credit can no longer be used to buy bitcoin or any other altcoin. This marks the first major bank to invest in an exchange. Read more about A whopping Therefore, whoever comes in the path, it gets questioned for its role in making the crime happen. Crypto Credit Lines Sponsored.