Australian Bank also going to stop its customers to buy cryptocurrencies by Credit Cards

Australia’s largest bank has stopped its customers from purchasing cryptocurrencies such as bitcoin using their credit cards.

Due to the regulations and high volatility of cryptocurrencies, the Commonwealth Bank of Australia (CBA) has stopped credit card purchases of cryptocurrencies. The move will also extend to Perth-based Bankwest, a bank which is entirely obtained by the CBA with operations in the country. The restriction will not continue to banking customers who will still be able to buy and sell cryptocurrencies using their debit cards.

According to the reports, Bank announced:

“We have made this decision because we believe virtual currencies do not meet a minimum standard of regulation, reliability, and reputation when compared to currencies that we offer to our customers. Given the dynamic, volatile nature of virtual currency markets, this position is regularly reviewed.”

The CBA will be the first Australian bank to keep its customers from using its credit cards for buying cryptocurrencies. Anyhow, recent remarks from the country’s remaining ‘big four’ banks suggest the shift in policy is unlikely to become a trend.

This announcement followed JPMorgan and Bank of America also said no to Crypto Transactions through Credit Cards. JPMorgan CEO Jamie Dimon told that they don’t want to inherit the credit risk as the market is fluctuating. Thinking about the price of high volatile investment in cryptocurrencies such as bitcoin, investors are opening the bank to a higher risk of default. At the same time, regulators are working to detect the signs of fraud, and taking the credit cards out of the equation explains things somehow.

After JPMorgan and Bank of America, UK’s Lloyds Bank also announced BAN Bitcoin’s Payment through Credit Cards. The bank will be setting up a ‘blacklist’ which will signal the sellers of cryptocurrencies to keep customers from purchases. According to the spokesperson, the aim is to protect the customers from unaffordable losses. The report also declares that the ban will not move towards the debit card customers, who will be able to buy cryptocurrencies constantly through their bank accounts.

The Lloyds spokeswoman said that the ban is launched to protect the customers from running huge bills from purchasing cryptocurrencies via credit card. Even Barclays is also Stopping the Customers Purchasing Cryptocurrency from Credit Cards.