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The banks catch up with cryptocurrencies

WSJ reports Bitcoin Investors Had a Tough Week. Credit-Card Companies Are About to Make It Tougher – Citi will do this for their customers, globally. JPMorgan Chase and Bank of America have joined in the bandwagon.

One of the biggest concerns for banks is that bitcoin purchases will push up their card losses. That includes cardholders who don’t pay their bills when the price of bitcoin falls below what they paid to buy it with the card.

This comes fresh off the announcement from Coinbase that when you buy using a credit card, there will be a cash advance fee being imposed on said transaction. Their Merchant Category Code (MCC) changed.

the MCC code for digital currency purchases was changed by a number of the major credit card networks. The new code will allow banks and card issuers to charge additional ‘cash advance’ fees. These fees aren’t charged or collected by Coinbase. These additional fees will show up as a separate line item on your card statement.

I have sources that state that HSBC in Singapore has been processing it as a cash advance recently (late-Jan 2018), and this is also true of Maybank in Malaysia by December 2017.

Consumer Protection Association Slams Bank for Blocking Transfers to Bitcoin Exchanges – maybe the greatest irony as to why cryptocurrencies are popular – you don’t seem to actually own the money in your bank. It is ridiculous when a bank says you can’t make a transfer to an account; this is also something Paypal or the likes have never solved. Banks should not be allowed to decide where your money goes; or should they then be on alert to prevent you from investing in Ponzi schemes, too?

Nordea forbids employees from investing in bitcoin, other cryptocurrencies – from 28 February 2018, their 31,000 employees are forbidden to buy cryptocurrencies; they won’t force a sale if you already own it. Employer overreach?

My nightmare trip to Bitcoin hell and back – yeah, cashing out is not as simple as one would think.

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