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Australian Banks Will Not Ban Cryptocurrency Purchases

Australia gives some good news to the cryptocurrency market. The most important Australian banks confirmed that they will not prevent customers from buying cryptocurrencies with credit cards. During the last days, some banks like Bank of America, JP Morgan Chase or Citigroup, have decided to ban cryptocurrency purchases with credit cards.

Australian Banks Not Against Crypto

It seems that the biggest Australian banks will not follow the steps that other banks took. Westpac, ANZ and NAB have confirmed that they will allow their customers to keep buying Bitcoin and other cryptocurrencies with credit cards.

ANZ told to ABC that they will not prohibit customers buying “cryptocurrencies or accepting them as a form of payment.” Besides that, an ANZ’s spokesperson said:

“We monitor transactions for unusual behaviour to protect against potential fraud and in line with our regulatory responsibilities. We do not bank with businesses that operate as issuers, dealers or exchanges of digital or cryptocurrencies. These businesses are currently unregulated and therefore not within ANZ policy.”

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NAB has also commented about this saying that it might not allow specific cryptocurrency transactions if securities concerns arise. Cryptocurrency exchanges are unregulated and customers may not be protected if there is a hack or if the platform fails. ‘We take the protection of our customers’ information and accounts extremely seriously,’ said NAB’s spokesperson.

Westpac and CBA have also commented that they do not have in their plans the intention to restrict cryptocurrency purchases.

That is important due to the fact that in some countries banks are not allowing their customers to buy cryptocurrencies. They argue that there is a risk regarding the use of credit cards due to the volatility of the market. The cryptocurrency market needed good news after some time with important FUD operations. Australian citizens are now sure that they will be able to purchase cryptocurrencies at least in the near future.

However, the cryptocurrency ban does not apply to purchases via debit card. The problem is the risk associated with the volatility of the market rather than the position of the bank in the cryptocurrency topic.

What About Other Countries?

The situation is different in South Korea or China. The Chinese government has been taking several measures to completely restrict cryptocurrency trading and Initial Coin Offerings. South Korea did not go as far as China but some banks have explained that they will not allow customers to buy cryptocurrencies.

In the United Kingdom, some banks like Lloyds Bank, Bank of Scotland, Halifax and MBNA do not accept credit card transactions to buy cryptocurrencies. In the United States, Bank of America and JP Morgan Chase have decided to take similar measures as the UK’s banks.

Lloyds explained that it is concerned that its customers may buy bitcoin and other cryptocurrencies to make profits when they rise, but they can face increasing debts when they fall.

After the information started to circulate in the media, the cryptocurrency market touched the lowest levels in more than three months. Some exchanges were trading bitcoin under $6,000 dollars on February the 6th.