Home / Crypto Currency / Wells Fargo Bans Customers from Buying Cryptocurrency with Credit Cards

Wells Fargo Bans Customers from Buying Cryptocurrency with Credit Cards


Wells Fargo Bitcoin

Advertisement

Get exclusive fiat and cryptocurrency analysis on Hacked.com for just $39 per month. Click here now!

Banking giant Wells Fargo has become the latest financial institution to ban its customers from using their credits cards to buy cryptocurrency.

Fortune reports that Wells Fargo — the third-largest US bank with nearly $2 trillion in total assets as of the end of last year — will begin declining transactions made at known cryptocurrency exchanges and brokerage platforms with bank-issued credit cards.

“Customers can no longer use their Wells Fargo credit cards to purchase cryptocurrency,” a bank spokesperson said in a statement Monday. “We’re doing this in order to be consistent across the Wells Fargo enterprise due to the multiple risks associated with this volatile investment. This decision is in line with the overall industry.”

“We will continue to evaluate the issue as the market evolves,” the spokesperson added.

As CCN reported, Wells Fargo is the latest in a long line of credit card issuers to bar their customers from making purchases using their cards. JPMorgan, Bank of America, and Citigroup had already enacted similar policies, meaning that customers at the four largest US banks will have to turn elsewhere if they want to buy crypto on credit.

Credit card processors including Visa and Mastercard have also begun charging cash equivalence fees on cryptocurrency purchases, saddling customers with extra fees for these transactions.

These prohibitions have come as the cryptocurrency market has entered a bear cycle, as banks say that they worry investors buying coins on credit will default on their payments.

In January, a survey conducted by student loan marketplace LendEDU found that approximately 18 percent of investors had purchased cryptocurrencies using a credit card and that one-fifth of those investors were carrying the balances rather than paying them off immediately.

A follow-up survey conducted by The Student Loan Report (a LendEDU affiliate) found that 21 percent of university students had used financial aid — loans that in the US are generally not dischargeable in bankruptcy — to invest in bitcoin and other cryptocurrencies.

Notably, this isn’t the first time Wells Fargo has taken a hostile line against the cryptocurrency industry. Last year, the institution cut off banking services to cryptocurrency exchange Bitfinex, which is said to have subsequently used a series of third-party accounts to maintain access to financial services before ultimately finding a banking partner in Puerto Rico.

Featured Image from Shutterstock

Follow us on Telegram.
Advertisement
Read more

Check Also

“Bitcoin (BTC) Prices Yet To Hit Rock Bottom”: Bitcoin (BTC) Technical Analysis (June 18, 2018)

With every slide in the cryptocurrency market, Bitcoin dominance increases. As a matter of fact, Bitcoin ball park control stands at 40 percent in the last seven days or so. That’s when bears took more than $30 billion despite supportive news from the SEC. Going forward, it could be worse for cryptocurrency portfolios because any break below $6,000 and we might see BTC valuation dropping 85 percent from its ATHs to $3,000. Let’s have a look at these charts: From the News It is attack after attack but in the case of BitGrail, ordinary account holders are set to suffer. A while back, this Italian exchange was hit by hackers who made away with $187 million worth of Nano coin. Even though the operations of the exchange took a hit, they resumed normal services a few days later. However, with formal announcement by the exchange that they were not in a position to reimburse user funds because they strongly believe hackers took advantage of Nano’s blockchain weakness, the Nano Foundation refutes these claims. We have temporarily disabled the BitGrail exchange pending further notice. — BitGrail Exchange (@BitGrail) May 2, 2018 This inevitably means the court is the only center of arbitration and now through the orders of a Florence Court, where bankruptcy petition for BitGrail is on-going, BitGrail’s digital assets are under state custody. We cannot make solid conclusion as the hearing continues. 3000 users of the #BitGrail fiasco have filed a petition asking an Italian court to declare the entities that operated the Bitgrail exchange bankrupt.https://t.co/x3wfor4qe1 — DeusExMachina (@d1rtydan) April 27, 2018 Then again the CEO of BitGrail has been clear that there is nothing since the exchange is following court orders. Regardless, it’s clear that the exchange is in a poor financial situation and probably won’t repay victims. As litigation continues in Italy, authorities in South Korea are planning on creating a special economic zone for blockchain companies in the city of Busan. “We need a place to concentrate on the cryptographic industry in Korea like the Crypto Valley in Switzerland” This comes at the back drop of the country’s initial steps of totally banning ICOs and fostering an environment that isn’t supportive for crypto traders in general. #SouthKorea intends to launch a #blockchain center in Busan city to incubate companies and projects working in the sector. Modeled as “#Crypto Beach,” the development is reportedly inspired by Switzerland’s “Crypto Valley” in Zug.#Bitcoin #btc $btc $bitcoin #ETH #EOS #ICX — Hitman (@Hitman637) June 17, 2018 Because of this, most blockchain start-ups in South Korea offer their ICOs in other countries. So, to prevent loss, the only approach is to thaw their regulatory grip by creating such blockchain friendly zones. Of course, all things constant, this is positive for Bitcoin in the long haul. Bitcoin (BTC) Technical Analysis Weekly Chart Bitcoin Weekly Chart by Trading View Talking of Bitcoin hitting $3,000 may be pessimistic but here is the thing: Any break below $6,000 this week or within the next month and it would be catastrophic for coin holders in general. The web might even spread considering the positive correlation between Bitcoin prices and altcoins as we have been seeing in the last couple of days. Besides, even Trustory CEO thinks BTC prices are yet to bottom out and unwind the effect of Q3 and 4 2017 Tether pump. Price wise, it’s clear that BTC prices are trending around a key inflection point, a double bottom as the weekly chart shows. Overly, bears are in charge and we can draw a simple trend line between Q1 and recent Q2 highs to demonstrate that. In our previous projections, any up-thrust that lifts BTC prices above $8,000 will mean bulls are in charge and buying in line with the new shift of trend is practical. Conversely, it will be a journey back to $3,000 if sellers break below $6,000 as we have mentioned before. Daily Chart Bitcoin Daily Chart by Trading View Announcement by the SEC on June 14 was by all means timely. As we can see from the daily chart, that’s right at the main support line and initial bear targets at $6,500. Now, our trade plan based on these new events proposes buying but only when buyers push prices ideally past $7,000 and for conservatives at $7,800. Of course, with the past three candlesticks moving within tight trading ranges, patience would be an asset and would mean buying only once our trade conditions are met. On the reverse side where sellers drive below $6,000 and it would be a slide to $3,000. The post “Bitcoin (BTC) Prices Yet To Hit Rock Bottom”: Bitcoin (BTC) Technical Analysis (June 18, 2018) appeared first on NewsBTC.

Leave a Reply

Your email address will not be published. Required fields are marked *

Disclaimer: Trading in bitcoins or other digital currencies carries a high level of risk and can result in the total loss of the invested capital. theonlinetech.org does not provide investment advice, but only reflects its own opinion. Please ensure that if you trade or invest in bitcoins or other digital currencies (for example, investing in cloud mining services) you fully understand the risks involved! Please also note that some external links are affiliate links.