Report: Bank of America, JP Morgan Ban Credit Crypto Purchases
Two of Wall Street's biggest banks are reportedly taking steps to bar customers from using credit cards to purchase cryptocurrencies.
Bank of America and JPMorgan Chase will reportedly no longer enable customers to purchase bitcoin with credit cards starting in February, reports say.
Revealed today in a Bloomberg report, JPMorgan is expected to start its ban on Feb. 3 due to concerns about the credit risk of those who make purchases through their cards. Bank of America is said to be launching its ban on Feb. 2, when transactions with known cryptocurrency exchanges will begin to be declined.
The Bank of America ban is limited to credit cards, and will not impact customers who wish to purchase cryptocurrencies using debit or ATM cards, according to the news source.
Bloomberg further reported that the Bank of America cited anti-money laundering regulations for the move, as well as the potential for thieves to convert stolen credit cards into cryptocurrency stashes.
Like JPMorgan, Bank of America is also concerned with the idea customers can purchase more cryptocurrency than they can afford. Other banks have purportedly moved to increase charges for crypto transactions in recent weeks.
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Stepping back, move coincides with a broader discussion among financial firms about how their businesses are being impacted by the cryptocurrency economy, which after growing by leaps and bounds in 2017, has seen a sizable market drawdown so far this year.
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