The latest crackdown against cryptos was unveiled on Thursday when the largest US bitcoin exchange, Coinbase, sent out notices to clients, informing them that purchasing cryptocurrencies on credit would now be prohibitively expensive, if not impossible, as banks have started to process payments for bitcoin et al as "cash advances", which tend to come with extremely high interest rates:
Dear Coinbase Customer
We’re writing because you have a credit card on file and want to inform you of a recent change that may increase the cost of purchasing digital currency with a credit card.
A growing number of banks in the USA and UK are banning the use of credit cards to purchase Bitcoin over fears that this could end in trouble for customers and banks alike … more…
(Reuters) — Banks in Britain and the United States have banned the use of credit cards to buy Bitcoin and other “crypto currencies”, fearing a plunge in their value will leave customers unable to repay their debts. Lloyds Banking Gr...
Lloyds Banking Group on Monday joined major US banks in banning purchases of bitcoin and other cryptocurrencies via credit card amid debt and security concerns.
The banks don't want customers charging crypto purchases because it's volatile and a high credit risk. The post Major Banks Ban Cryptocurrency Purchases on Credit Cards appeared first on ExtremeTech.