Cryptocurrency Ban Expands Across Canadian Banks as BMO Joins ‎Crackdown

BMO Financial Group (Bank of Montreal) has banned credit and debit card ‎customers from buying Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, another blow for the crypto-traders ‎who recently saw a sizable number of banks deciding not to ‎finance the wobbly asset class.‎

Bank of Montreal started declining ‎cryptocurrency transactions with known exchanges on March 28, ‎according to a bulletin published on Reddit by a user claiming ‎to be working for the bank.‎

The policy applies to all personal and business credit cards, ‎according to a memo. It also affects debit cards and online banking ‎services through the BMO’s Interac Online Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term.‎

The leaked memo states: "effective immediately, BMO will be ‎blocking cryptocurrency merchant transactions. This ‎decision was made due to the volatile nature of ‎cryptocurrencies and to better protect the security of our ‎clients and the bank."‎

BMO’s decision follows several of the biggest Canadian banks banning ‎cryptocurrency transaction over the past few months, as part of a global crackdown ‎led by major lenders and credit card issuers. Canada's largest bank ‎Toronto-Dominion Bank (TD Bank) has blocked attempts to buy ‎digital currencies last month. ‎

Royal Bank of Canada (RBC), Canada's second-largest ‎bank by assets, didn’t cut off card purchases but said it would ‎allow transactions involving cryptocurrency only “in limited ‎circumstances."‎

While BMO is not the first, but the action exacerbates pressures and make it more ‎difficult for enthusiasts to buy into the market as more other banks could shortly ‎follow suit.‎

The banks fear that allowing purchases of cryptocurrencies using money ‎borrowed on credit cards could leave them on the hook if the buyers’ bets were ‎wrong and couldn’t repay their debts.‎