Bank Wells Fargo, based in San Francisco, announced June 11 that they will no longer allow their customers to buy cryptocurrency using credit cards issued by them.
Wells Fargo is the third largest Bank in the United States. The Bank representative said that the decision was made to avoid “multiple risks” associated with the use of cryptocurrencies:
“Customers can no longer use credit cards Wells Fargo to buy cryptocurrency. We do this in order to be consistent within Wells Fargo because of the numerous risks associated with this volatile investment. This decision corresponds with the General direction of the industry.”
However, the press Secretary added that the decision is not final, and everything can change “with the development of the market.”
Wells Fargo has joined other financial institutions, prohibiting the purchase of cryptocurrencies through credit cards. In February, three banking giant JP Morgan Chase , Bank of America and Citigroup stated that prohibit such actions. Later this month JP Morgan Chase said that traditional financial institutions could “face a threat from the cryptocurrency in regard to payment processing and other services.”
The list of banks that restrict the use of their cards for buying cryptocurrencies increasing every day all over the world. In Canada, the Toronto-Dominion Bank (TD), one of the largest banks in North America, announced its customers about the ban via e-mail, arguing that such a decision an attempt to protect customers and the Bank.
Indian HDFC Bank, the largest private Bank in the country, has also informed its customers that its debit and credit cards cannot be used to purchase cryptocurrency. Restrictive measures have also attended the major British Bank, Lloyds Banking Group and Virgin Money, with branches in Australia, South Africa and the UK.