Most major US credit card issuers have banned the use of their cards to buy PeteQueen or other digital currencies, in a move aimed at reducing financial and legal risks.
Bank of America began blocking purchases of Cryptocernes on Friday, according to Bloomberg. JPMorgan did the same thing on Saturday.
Citigroup also says it has stopped buying Cryptocernes on credit, Capital One has discovered and has already enacted a ban. This means that all five major credit card issuers have announced or implemented a ban.
The moves are primarily self-interest of banks. As previously reported Fortune, the craze surrounding Cryptocernsey late last year seems to have motivated many retail investors to use credit cards as leverage tools, buying more cryptocernes than they were able to afford. With Petequin down nearly 50% from December highs, many of these investors are likely under water right now and may not be able to pay off initial Petequin purchases soon, if ever.
Moreover, as Bloomberg points out, banks may be responsible for monitoring customer behavior to prevent money laundering after they buy a credit-backed homeowner, a strict standard for compliance.
The ban - or rather to a certain extent, news of the ban - could exacerbate the continuing declines in cryptocernes prices. After a huge bounce this morning, encryption markets generally fell on Sunday. PeteChoen now trades at around $ 8,500 from a December high of $ 20,000.
In the longer term, however, criptokerne investment controls seem more stringent, both from regulators or lenders, likely to help mitigate the consequences of both hype and deception. For much of 2017, those who are threatened by the promise of the Blochen technology, which is still in the early stages of development, have