Banks Are Enforcing Holds or Bans on Cryptocurrency Purchases

Banks Like Capital One Are Enforcing Bans on Cryptocurrency Purchases

Despite recent stretches into mainstream acceptance, cryptocurrencies still have strong enemies in the mix, one of which appears to be Capital One Bank. The institution and other banks like it are currently barring users from purchasing digital assets on crypto exchanges.

Also read: Will the US Issue a Federally-Backed Cryptocurrency?

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Banks Are Saying “No” to Crypto

Several complains have emerged on social media from Capital One customers, who claim they’ve been barred from purchasing bitcoin on Coinbase and other related platforms. It also appears the blockage applies to both bank account transfers and credit card purchases. Several users have noticed that in attempting to purchase crypto, their transactions simply aren’t processed and don’t seem to move.

It’s one thing to bar purchases in the first place, but Capital One is adding insult to injury by refusing to offer formal notices to customers, who are simply stuck waiting in the wings for transactions to go through.

Communications are eventually sent from users’ respective crypto exchanges, which inform individuals that their payments cannot be accepted thanks to Capital One’s newfound restrictions.

No Answers Given

At press time, Capital One has not released a statement regarding why it has decided against processing cryptocurrency transactions.

This isn’t the first time a national bank has taken such a strong and aggressive stance against digital currency. Last October, many customers of TD Bank experienced severe delays and blocks to their accounts while trying to purchase bitcoin on Coinbase.

TD Bank later announced that it would not support bitcoin, nor would it “deal with the kind of business” associated with cryptocurrency. The institution did not elaborate any further.

PNC Bank has also begun taking measures against bitcoin by preventing customers from buying it directly through their bank accounts.

Nowhere to Turn?

The problem has reportedly stretched beyond the normal boundaries into the realms of once crypto-friendly banks including Metropolitan Bank Holding Corp., which has often been affectionately referred to by customers as “The Bitcoin Bank” due to its open-arms attitude towards the currency.

At press time, however, MBHC has ceased processing all international cryptocurrency wire transfers.

 

The bank has explained that it cannot “verify the compliance of international wire transfers for cryptocurrency accounts,” and thus is putting all present and future transactions on hold. The move is allegedly in response to an incident of international fraud involving one of the bank’s clients from just days ago. For now, it is unclear when or even if the bank intends to release its hold on such transfers or purchases.

Presently, the bank houses several funds belonging to international investors that cannot be accessed granted the hold continues.

Bitsonline will continue to bring you information on these current bank freezes as further developments occur.

Is this the beginning of the end for crypto, or will the banks lose their way? Post your comments below.


Images via Pixabay, Twitter, Time

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