This is an interesting article on Zerohedge today Here regarding the use of credit cards getting cut off on Coinbase. While probably a good idea, I can't help but feel like this is the start of a wider clamp-down on the space...
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.Recently, the MCC code for digital currency purchases was changed by a number of the major credit card networks. The >new code will allow banks and card issuers to charge additional "cash advance" fees. These fees are not charged or >collected by Coinbase. These additional fees will show up as a separate line item on your card statement.
The move came as a number of bank and card issuers announced that they would be reviewing changes to their policies around the purchases of crypto assets using credit cards.
Then, last Thursday the Wall Street Journal reported that Capital One banned customers from using credit cards to purchase bitcoin or coins on the Ethereum blockchain, citing “limiting mainstream acceptance and the elevated risks of fraud, loss and volatility.” Discover Financial announced it would likewise block bitcoin transactions.
Then yesterday, MarketWatch reported that Bank of America and other major lenders are assessing the use of credit cards to purchase bitcoin and other virtual currencies, which could result in restrictions or limits.
Today that was confirmed when Bank of America became the largest U.S. lender yet to bar customers from using their credit cards to buy cryptocurrencies.
According to an internal memo to employees obtained by Bloomberg, the second largest US bank said it “will begin declining credit card transactions with known cryptocurrency exchanges” starting today. It said the policy will apply to all personal and business credit cards issued by the bank.
That is interesting. I haven't bought any crypto yet so I don't have any to trade and I'm no willing to give up my Steem. If all banks followed this how would someone get into crypto in the first place. Are there other ways to buy other than credit card or trading other cryptos?
They will allow debt cards and ACH transfers...for now, but I fear its only a matter of time before the overreach of our overlords affects those methods as well.
@matthewwarn I have never used a Credit Card to buy Crypto's as of yet. Interesting though to see how the banks are once again overstepping Freedom.
I obviously don't think buying Crypto on a CC is a good idea...but we are all adults and don't need Government or Banks to tell us what we can and can not do with our own money.
Yup, the first step in many to follow. I keep saying that too much regulation will strangle JW crypto world. The politicians are itching to get their hand in there to control it...2018 will be an interesting year for this. Let’s see what’s next in the pipeline...
muy buen aporte, a pesar de que fue copiada me gusto mucho :D
Wouldn't surprise me if debit cards or even ACH transfers are next... For "customer security and safety"...
This stuff annoys the piss out of me. Nothing like having some massive "too big to fail" corporation tell you you're too stupid to make your own choices.
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The more banks try to regulate and control people from using crypto, the more people will use crypto. It's incredible how stupid banks think we are. Their control and manipulation reign is coming to an end and they're going down fighting and scratching.
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