A report by Fortune on June 11th said that the San Francisco based bank, Wells Fargo has announced that they will no longer allow the customers to trade in cryptocurrencies through their credit cards.
The third largest bank in the US was reported saying that their customers are now prohibited from purchasing digital currency on the credit cards issued by the Wells. A bank spokesperson added that this decision was made to avoid the “multiple risks” associated with the crypto exchange:
“Customers can no longer use their Wells Fargo credit cards to purchase cryptocurrency. We’re doing this in order to be consistent across the Wells Fargo enterprise due to the multiple risks associated with this volatile investment. This decision is in line with the overall industry.”
He further said, “the bank will continue to evaluate the issue as the market evolves.”
The move has led Wells Fargo to join the wave of financial institution banning the purchase of cryptocurrency with their credit cards. This year, back in February, the three banking giants, J.P. Morgan, Citigroup, and Bank of America, announced that they will no longer allow customers to purchase digital currencies through their credit cards.
This list of banks prohibiting buying of cryptos through their credit cards has been growing globally. Canada’s Toronto-Dominion Bank, one of the largest in North-America, made an announcement through an email statement to its customers, banning the purchase of cryptocurrencies through its credit cards. The email read that these were taken “in order to serve and protect our customers, as well as the bank.”
HDFC Bank, India’s largest private bank too, has taken measures and have informed their customers that it will not allow them to purchase cryptos through the cards issued by the banks as a measure of protecting customers.