The largest bank in Australia has banned its customers by buying crypto-currencies like bitcoin using its credit cards, starting today.
The Commonwealth Bank of Australia (CBA), citing a lack of regulation and high volatility in cryptocurrencies, ended the purchase of cryptocurrencies by credit card. This slowdown will also extend to Bankwest, a Perth bank, fully acquired by the CBA and operating in the country. The restriction will not be limited to the payment of credit card debt.
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"We made this decision because we believe that we must meet the minimum standard of regulation, reliability and reputation when comparing our customers, given the dynamic and volatile nature of virtual currency markets,
In doing so, the ABC became the first Australian bank to retain its customers using its credit cards for the purchase of cryptocurrencies. However, recent remarks by the country's four remaining big banks suggest that policy change should not become a trend.
As reported last week, an ANZ spokesperson confirmed that the bank "does not prohibit" cryptocurrency purchases, nor does it prevent customers from "accepting them as a form of payment". Westpac, Australia's second largest bank, added that it imposed no restrictions on the purchase of cryptocurrencies.
The CBA joins the Llyods and United States banks of the United Kingdom in JPMorgan, Bank of America and the United States.