Canada’s Bank of Montreal (BMO) announced recently through its email that it will not allow its clients to buy or sell cryptocurrencies using the Interac debit cards. However, the bank will provide the crypto-related banking services to a recognized brokerage platform. The Interac ban comes after reports emerged recently that the bank had barred all the crypto transactions via the Mastercard debit and credit cards.
According to the affected customers, the BMO has blocked all the cryptocurrencies transactions on both the credit and debit cards. The new policy is effective immediately. According to the reports, the move is basically due to the ongoing volatility of the cryptocurrencies. The bank is trying to come up with measures to protect both its customers and the bank from the effects of the fluctuating prices of the virtual currencies and the uncertainties of the crypto industry.
The news comes after another giant bank in Denmark, Danske Bank also announced recently that it will stop all the cryptocurrencies-related transactions due to several factors including the prevailing lack of customer protection, unregulated industry, and high price volatility. Though Danske Bank still allows the users to purchase the cryptos using their credit cards, the Bank stated that plans are underway to cut short the cryptocurrency transactions.
Other global banks that have banned the crypto purchases with their credit and debit cards include the Bank of America and JPMorgan Chase. BMO had earlier announced that it will provide and support the crypto asset banking service on the new brokerage platform and at the moment, only Bitcoin and Ethereum will be considered if the demand is sustainable.
The brokerage platform will be launched by the TMX Group. However, if the bank decides to offer the crypto asset requests via its brokerage firm and denies its customers a chance to do the same with the credit and debit cards, it would be contradicting the policy of the bank.