TD Bank Prevents Customers from Using Credit Cards to Purchase Cryptocurrencies

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The Canadian Press released a statement claiming that the TD Bank was, from now on, stopping its customers from using credit cards to buy cryptocurrencies.

A lot of banks had already made the same decision because of the volatility of the cryptocurrency market.

Last week, a TD representative mentioned in an email,

“At TD, we regularly evaluate our policies and security measures, in order to serve and protect our customers, as well as the bank.”

Last year, Bitcoin had reached an all-time high of almost 20 000 US dollars per coin. However, it had a huge drop in the beginning of 2018 and trades for 9785 USD today. It is still far from its all-time high, but we have seen a recovery this week since the 6000 USD it reached during the crash.

There are other banks such as the Royal Bank that took the decision to allow its debit and credit cards to be used to buy cryptocurrencies with limitations. Without these limits, it would be very risky for the financial institution to have too big of a debt and not being able to repay it, if there is a crash in the cryptocurrency market.

A spokesperson from RBC communicated in an email statement,

“We do recognize that regulation, risk and other external environmental factors relating to cryptocurrency continue to evolve… As such, we continue to review our policies to consider how we can best support clients.”

Another Canadian bank that is reviewing their cryptocurrency purchase policy is the The Bank of Nova Scotia. In an email statement, a Scotiabank representative mentioned,

“We understand that regulatory and risk factors related to cryptocurrency continue to evolve and as a result, we are closely reviewing our policies with respect to cryptocurrency transactions.”

Other Canadian banks such as the Bank of Montreal and the Imperial Bank of Commerce  have not responded yet, but will surely take a close a look at what is happening around them.

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