Bitcoin Ban Expands Across Credit Cards as Big U.S. Banks Recoil

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A growing number of big U.S. credit-card issuers are deciding they don’t want to finance a falling knife.

JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc. said they’re halting purchases of Bitcoin and other cryptocurrencies on their credit cards. JPMorgan, enacting the ban Saturday, doesn’t want the credit risk associated with the transactions, company spokeswoman Mary Jane Rogers said.

Bank of America started declining credit card transactions with known crypto exchanges on Friday. The policy applies to all personal and business credit cards, according to a memo. It doesn’t affect debit cards, said company spokeswoman Betty Riess.

And late Friday, Citigroup said it too will halt purchases of cryptocurrencies on its credit cards. “We will continue to review our policy as this market evolves,” company spokeswoman Jennifer Bombardier said.

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Allowing purchases of cryptocurrencies can create big headaches for lenders, which can be left on the hook if a borrower bets wrong and can’t repay. There’s also the risk that thieves will abuse cards that were purloined or based on stolen identities, turning them into crypto hoards. 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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Bitcoin has lost more than half its value since Dec. 18, falling below $8,000 on Friday for the first time since November. The drop occurred amid escalating regulatory threats around the world, fear of price manipulation and Facebook Inc.’s ban on ads for cryptocurrencies and initial coin offerings.

Now, cutting off card purchases could exacerbate those pressures by making it more difficult for enthusiasts to buy into the market. Capital One Financial Corp. and Discover Financial Services previously said they aren’t supporting the transactions.

Mastercard Inc. said this week that cross-border volumes on its network — a measure of customer spending abroad — have risen 22 percent this year, fueled partly by clients using their cards to buy digital currencies. The firm warned that the trend already was beginning to slow as cryptocurrency prices fell.

Discover Chief Executive Officer David Nelms was dismissive of financing cryptocurrency transactions during an interview last month, noting that could change depending on customer demand. For now, “it’s crooks that are trying to get money out of China or wherever,” he said of those trying to use the currencies.

    Read more: http://www.bloomberg.com/news/articles/2018-02-02/bofa-to-decline-all-cryptocurrency-transactions-on-credit-cards

    The Worlds Biggest Wealth Manager Wont Touch Bitcoin

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    UBS Group AG , the world &#x 2019; s biggest wealth isn, #x &supervisor 2019; t prepared to make portfolio allowances to bitcoin due to the fact that of an absence of federal government oversight, the bank &#x 2019; s primary financial investment officer stated.

    Bitcoin has likewise not reached the emergency to be thought about a feasible currency to purchase,&#xA 0; UBS &#x 2019; s Mark Haefele stated in an interview. The overall amount of all cryptocurrencies is &#x 201C; not even the size of a few of the smaller sized currencies” “that UBS would designate to, he stated.

    Bitcoin has actually divided financiers over the practicality of the unpredictable cryptocurrency and UBS is amongst its critics. Bitcoin topped a resurgent week by climbing up within a couple of dollars of a record $8,000 on Friday. Still, occasions such as a bitcoin-funded terrorist attack are prospective dangers which are difficult to examine, he stated.

    &#x 201C; All it would take would be one terrorist event in the United States moneyed by bitcoin for the United States regulator to far more seriously action in and do something about it, he stated. &#x 201C; That &#x 2019; s a danger, an unquantifiable threat, bitcoin has that another currency doesn &#x 2019; t.””

    While doubters have actually called bitcoin &#x 2019; s fast advance a bubble, it has actually ended up being too huge a possession for numerous monetary companies to disregard. Bitcoin has actually gotten 17 percent today, touching a high of $7,997.17 throughout Asia hours prior to moving lower in late trading. The rally through Friday followed bitcoin eliminated as much as $38 billion in market capitalization following the cancellation of an innovation upgrade called SegWit2x on Nov. 8.

    UBS Chairman Axel Weber this month stated Bitcoin was a speculative financial investment and not a shop of worth, while Credit Suisse Group AG CEO Tidjane Thiam explained the speculation around bitcoin as the &#x 201C; really meaning of a bubble. &#x 201D; JPMorgan Chase &&Co. CEO Jamie Dimon has actually called bitcoin &#x 201C; a scams &#x 201D; that will ultimately explode.

    Putin &#x 2019; s View

    Russia &#x 2019; s President Vladimir Putin last month flagged the danger of cryptocurrencies being utilized for loan laundering, tax evasion and financing for terrorism. Still, he stopped short of backing a broad restriction in the nation.

    Bitcoin isn &#x 2019; t government-sponsored and some might utilize it to prevent oversight, a circumstance that &#x 2019; s &#x 201C; not likely to continue permanently,” “Haefele stated. The CIO sees the bank &#x 2019; s own research study into bitcoin as a chance to engage with customers on concerns such as the function of currencies and speculative properties in a portfolio.

    Still, CME Group Inc., the world &#x 2019; s biggest exchange owner, has stated it prepares to present bitcoin futures by the end of the year, pointing out suppressed need from customers. That presses bitcoin closer to the mainstream by making it simpler to trade without the inconveniences of owning the currency straight.

    &#x 201C; The thing that constantly strikes me about these, quote unquote, financial investments is not truly when you would enter into it however when you would leave it, &#x 201D; Haefele stated. &#x 201C; So how do you understand when to obtain from a bitcoin financial investment?””

    Read more: http://www.bloomberg.com/news/articles/2017-11-17/ubs-shuns-bitcoin-allocations-due-to-threat-of-crypto-crackdown

    Jamie Dimon Said He Wouldnt Talk About Bitcoin Anymore. That Lasted One Day

    Jamie Dimon stated Thursday that he was done discussing bitcoin. Obviously not.

    On Friday, the JPMorgan Chase &&Co. ceo duplicated much of his September tirade versus the cryptocurrency, stating individuals who purchase bitcoin #x &are 201C; foolish &#x 201D; which federal governments will squash it one day.

    &#x 201C; Who appreciates bitcoin? &#x 201D; Dimon asked at the yearly conference of the Institute of International Finance in Washington, prior to calling it a &#x 201C; terrific item &#x 201D; for lawbreakers.

    Dimon ended his most current diatribe with a brand-new vow– this is the last time he discusses bitcoin.

    Read more: &#x 2018; Rent-Taker &#x 2019; Dimon Will Lose in Cryptorevolution

      Read more: http://www.bloomberg.com/news/articles/2017-10-13/jamie-dimon-lasts-one-day-on-his-vow-to-not-talk-about-bitcoin