February 6, 20183min1231

Banks are adding fuel to the fire

  •  Banks in U.S. and U.K. put a ban on buying crypto

  • Can we expect more measures from them?

 

After an awful first month of this year, there is no break in sight for crypto-traders. Sources say banks are beginning to forbid their loyal customers from purchasing cryptocurrencies. This has started over this weekend. U.S. banks such as Bank of America, Citigroup, JP Morgan, Capital One and Discover pulled a trigger.
Many crypto-enthusiasts has been wondering when will banks start their offense on crypto since it is in direct competition with. And yet they supported their customers with going away to their competition.

Now the first blow has come, but could there be something bigger coming? The cryptomarket is abundantly smaller than banking industry and pretty new since it only started in 2009. It does not have almost any experience in dealing with competition and dirty tactics like the banks are used to. Just look at Panama papers. From one of the oldest and most powerful industries, we can expect to have much more than just one trick up their sleeves.,

Visa, back in January, ended its relationship with a renowned cryptocurrency card provider. That resulted in thousands of people not being able to use the service which they paid for.
Following U.S. Banks banning the credit-card purchase of cryptocurrencies, was U.K.s Lloyds banking group, MBNA, Halifax and Bank of Scotland. Decisions of the banks deeply affected many crypto exchanges who allow users to fund their crypto accounts by using credit cards.

Cryptomania is driven by retail investors who primarily use their credit cars and debit cards to fund their accounts at various different crypto exchanges. Speculation that credit gives you more security against fraud and hence the idea that clients use these instead of debit cards don’t have much merit.

Banks with these kinds of measures are making it clear that their clients are not owners of their own money since they can control where and how you can spend their money. These exact measures are one of the reasons which make cryptocurrencies so longed-for. People are tired of being controlled around and they find the freedom they desire and deserve in cryptocurrency.


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