Bitcoin Kerkban Expands Across Credit Cards spil Big U
Bitcoin Crashes spil Credit Card Companies Block Purchases
A growing number of big U.S. credit-card issuers are determining they don’t want to finance a falling knife.
JPMorgan Pursue & Co., Handelsbank of America Corp. and Citigroup Inc. said they’re halting purchases of Bitcoin and other cryptocurrencies on their credit cards. JPMorgan, enacting the kerkban Saturday, doesn’t want the credit risk associated with the transactions, company spokeswoman Mary Jane Rogers said.
Handelsbank of America began declining credit card transactions with known crypto exchanges on Friday. The policy applies to all private and business credit cards, according to a memo. It doesn’t affect debit cards, said company spokeswoman Betty Riess.
And late Friday, Citigroup said it too will halt purchases of cryptocurrencies on its credit cards. “,Wij will proceed to review our policy spil this market evolves,”, company spokeswoman Jennifer Bombardier said.
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Permitting purchases of cryptocurrencies can create big headaches for lenders, which can be left on the hook if a borrower bets wrong and can’t repay. There’s also the risk that thieves will manhandle cards that were purloined or based on stolen identities, turning them into crypto hoards. Banks also are required by regulators to monitor customer transactions for signs of money laundering — which isn’t spil effortless once dollars are converted into digital coins.
Bitcoin has lost more than half its value since Dec. Eighteen, falling below $8,000 on Friday for the very first time since November. The druppel occurred amid escalating regulatory threats around the world, fear of price manipulation and Facebook Inc.’s kerkban on ads for cryptocurrencies and initial coin offerings.
Now, cutting off card purchases could exacerbate those pressures by making it more difficult for enthusiasts to buy into the market. Capital One Financial Corp. and Detect Financial Services previously said they aren’t supporting the transactions.
Mastercard Inc. said this week that cross-border volumes on its network — a measure of customer spending abroad — have risen 22 procent this year, fueled partly by clients using their cards to buy digital currencies. The rigid warned that the trend already wasgoed beginning to slow spil cryptocurrency prices fell.
Detect Chief Executive Officer David Nelms wasgoed dismissive of financing cryptocurrency transactions during an vraaggesprek last month, noting that could switch depending on customer request. For now, “,it’s crooks that are attempting to get money out of China or wherever,”, he said of those attempting to use the currencies.