Although some banks and credit card companies have suspended their bitcoin purchase services for various reasons, Citi Group and Bank of America are reassessing the use of credit cards to buy bitcoins .
The information was made known through a report by the Wall Street Journal and CNBC . The policies that allow the purchase of bitcoins with credit cards are being re-evaluated by both banks: “at this moment there is nothing that can block a transaction, but we are carefully reviewing our policy,” said a Bank of America spokesperson.
Although there has been talk of stopping the service, if they follow the path of companies like Capital One, who stopped offering such a service recently, Bank of America or Citi could implement some changes, requirements and perhaps restrictions for the purchase of bitcoins . Among other banking entities that still allow the purchase of bitcoins or cryptocurrencies with credit cards is JP Morgan with its Chase card, but it is unknown if they implemented any political change in the service.
The reason that companies claim as a reason for the suspension of such services or review of their policies, seems to be money laundering , since it is definitely a factor that worries banks, companies and even regulators and government authorities in relation to the management or transactions with cryptocurrencies. In fact, governments such as the United States or Australia have been making legislative proposals or taking measures against this illicit use of cryptocurrencies.
Added to this is the risk that such purchases may represent, since customers may not pay the loan or cancel the debt in full because of the price volatility that can sometimes cause losses and they owe more than they invested.
The revision of Citi and Bank of America follows a recent announcement by Capital One, in which it stated that it was rejecting the purchases of cryptocurrencies with credit cards on its platform and that they would be reviewing the terms of said service as the market evolves. .
Hey there! We currently decline credit card purchases of cryptocurrency. We’ll continue evaluating our policy as this market evolves. ^TM
— Capital One (@AskCapitalOne) January 14, 2018
The decision of Capital One is joined by TD Bank , the subsidiary of Toronto-Dominion Bank, who explained that they were not processing some of the transactions with bitcoin for security measures; and Discover Financial Services, which for a long time prohibited the purchase of cryptocurrencies with their credit cards .
Previously, Visa, one of the largest card companies in the world, communicated through its CEO that it would not be processing transactions based on cryptocurrencies, since bitcoin is more akin to the definition of asset than currency. Shortly before that, Visa had already suspended its debit card services for Cryptopay, Bitwala, TenX and Bitpay; because Visa Europe canceled the membership of WaveCrest, a provider of prepaid cards.