The Bank of Montreal (BMO) of Canada will no longer allow customers to buy cryptocurrencies with Interac debit cards.
A spokesperson for the bank confirmed the change in an email on Tuesday without giving further details about the decision. The ban on Interac follows reports that the bank banned purchases of cryptograms through MasterCard debit and credit cards a few weeks ago.
In the email shared by Coindesk, the spokesperson said:
"I can confirm that we no longer allow the purchase of cryptocurrencies through Interac Online Payments or the use of a credit or debit card with the MasterCard brand of retail consumer".
The rumors of the movement emerged last week on Reddit, when a user who claimed to work for the bank shared what he described as a "company-wide" email, dated March 28. The user photographed a computer monitor that showed the email and included the photo in the Reddit publication.
"This decision was made due to the volatile nature of cryptocurrencies, and thus better protect the safety of our customers and the bank," the message read.
Transactions will be blocked directly for MasterCard products, while a temporary charge will apply to customers who use an Interac card to purchase cryptocurrencies. However, Interac's transactions will also be blocked, according to the document.
The news came the same week that Danske Bank, the largest bank in Denmark, published a document that said it was "negative" in general for cryptocurrencies for three main reasons: lack of client protection, high volatility and lack of regulatory oversight .
While Danske Bank will continue to allow its customers to buy cryptocurrencies with credit cards, it said it will stop buying derivative products related to cryptocurrencies or promissory notes traded on the stock market.
Earlier this year, US banks JPMorgan Chase and Bank of America banned purchases encrypted with their credit cards.