Adopting the course set by other banks and governmental institutions from all over the world regarding cryptocurrencies regulations, Bank of Montreal, a top 5 bank in Canada, has also decided to opt for a conservative position regarding cryptocurrencies market.
In March, there were rumors that the Bank of Montreal issued an internal memorandum which read that crypto regulations are in the plan. However, now it is official that the Bank doesn’t allow anymore its clients to buy cryptocurrencies using their account and credit/debit cards issued by the bank, arguing that this decision was taken “to better protect the security of the clients and the bank.”
In Canada, there is a recent trending followed by banks which restrict more and more their clients’ freedom of transacting cryptocurrencies.
Thus, Scotiabank has hindered VISA transactions related to cryptocurrencies and Toronto-Dominion Bank banned crypto purchases made with the bank-issued credit cards.
The banks are struggling to ban cryptocurrencies-related transactions
Many banks from every corner of the world have endeavored to work against cryptocurrencies market.
Commonwealth Bank, Danske Bank, and Citigroup are just a few of the important names of the banking industry which keeps on limiting their clients’ capacity of buying cryptocurrencies. Even more, there have been cases in which these banks even froze clients’ accounts without any notice if crypto-related transactions were registered.
However, these hostile tactics have demonstrated to be futile attempts because cryptocurrencies experienced holders and investors in Canada, for example, redirected their activities to regional gatherings and exchanging operators, making it possible for websites like Localbitcoins to boost in traffic directed from Canada since the beginning of April.
Cryptocurrencies still have supporters among the Canadian financial institutions
For example, TMX Group has declared earlier its intentions to release a cryptocurrency exchange platform and, along with Shorcan Digital and PayCase Financial, they also work on developing a cryptocurrencies brokerage service.
In conclusion, adopting the international trending regarding the crypto assets, major banks of Canada opted for a more conservative policy regarding cryptocurrencies market by limiting their clients’ ability to buy cryptocurrencies.
Jackson Bey was born and raised in Lethbridge Alberta but moved east when he was 22. Apart from running his own consulting firm. Jackson spends his time canoeing the many lakes of Ontario. As a financial journalist Jackson has published stories for CBC Business Online, as well as Buzz Feed and Motherboard. As a contributor to Billionaire 365, Jackson mostly covers markets and trade.