JP Morgan Chase becomes one of the big three banks to close their doors to crypto. While not all bitcoin and crypto purchases will be prevented, credit card users will bear the brunt of the force. Credit card purchases of Bitcoin will no longer be allowed as banks begin their clampdown. This was further echoed by Halifax, MBNA, Lloyds and RBOS also closing their doors to bitcoin in the UK.
As seen below, bitcoin prices have been extremely volatile over the past week. The current week has seen a large drop in value from $10241 to lows of $6040 on Thursday. Reflecting the panic selling due to the restrictions being enforced, trading volumes exceeded $13.5 Billion.
Considering bitcoin prices are extremely volatile, at the time of writing, shedding well over $2000 within one week, many banks consider the loans and credit being used to invest in crypto as particularly risky. Not only do banks no longer have confidence that their loans will be paid back, the wave of risky investing has tipped into the territory of gambling as many remortgage houses and take huge loans simply to jump aboard the bitcoin hype. Furthermore,, the banks have also cited potential security issues with bitcoin funds. JP Morgan has closely linked bitcoin trading to money laundering and terrorist funding practices.
To conclude, JP Morgan Chase, the Bank of America and even the Citi Group have announced a blanket ban on bitcoin purchases via their credit cards. Citing consumer protection as the main reason behind the current change in policy these banks join the likes of the Lloyds banking group which also announced a ban on crypto purchases.