Australia’s biggest banks like Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC) have a rapidly evolving policy on customers trading cryptocurrencies like Bitcoin and Ripple.
While media reports in December reported that some bank customers were having their accounts ‘frozen’, Commonwealth Bank did not respond to Rask Media’s emails last week requesting that it clarify its stance on cryptocurrencies.
However, finder reported earlier this month that there was no outright ban on cryptocurrencies, with Commonwealth Bank reportedly stating:
“Our customers are able to buy and sell virtual currencies using Commonwealth Bank accounts, including credit cards, as long as they comply with our terms and conditions and all relevant legal obligations.”
That has changed very recently, with Business Insider reporting four days ago that Commonwealth Bank has now implemented an outright ban on purchasing cryptocurrencies using credit cards. Commonwealth Bank stated:
““Given the dynamic, volatile nature of virtual currency markets, this position is regularly reviewed.””
A number of US banks have cracked down on customer purchasing of Bitcoin on credit, and with the Royal Commission underway, Commbank is likely feeling increasing pressure to conform to social expectations and legal requirements – which might be a tall order, given some of the scandals that have come out of the bank in recent times.
The risk of banks or anti-money laundering (AML) laws further restricting the trade of cryptocurrencies is something that cryptocurrency speculators should keep in mind.
Without a ‘counterparty’ – somewhere to store the cash you use for buying or selling cryptocurrencies – it could become more difficult for people to trade cryptocurrencies like Bitcoin or Ripple.
Big banks restrictions on the trading of cryptocurrencies might stem the rush of new investors into the market. The ‘new currencies’ might, ironically, be stopped by restrictions on the institutions responsible for the ‘old currency’.
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