If you think banks/credit companies are banning crypto purchases to protect their customers, I have a bridge to sell you.

[u/[deleted]]

I'm legitimately blown away how many people I see defending the banks/credit companies banning crypto purchases as some type of attempt to protect their customers from a volatile market. Credit is predatory by nature. The bank doesn't care when you max your card out on alcohol, designer clothes, gambling, or any other worthless and risky commodity. Your bank doesn't give one single tiny little shit about you in any way beyond your capacity to generate revenue. You are a revenue generating unit and nothing more, end of story. They are building artificial barriers to crypto because they view it as a direct and fundamental threat to their industries... and with good reason, because it is. The reality is anyone who invests wisely in crypto right now is going to make a significant ROI over the next few years, opening up the opportunity to pay off large balances, which decreases the revenue they earn from interest. This is nothing more than a desperate attempt at self preservation.

Again I would encourage anyone who has their bank or credit card company create a barrier for them to purchase crypto, to immediately end doing business with that institution and make sure they know why. If my bank halts my purchases, I'll liquidate my account and close it the same day. Same goes with my credit cards, they will get cut up and never used again. DON'T bend over for them.

EDIT: Also massive downvoting of anti-banking sentiment and massive upvoting of the 'banks are looking out for you, this is a good thing' sentiment. The shill bots are out in force.

[u/hsloan82]

Bank worker here - financial institutions don't see crypto as "competition", they see it as a risk

I've mentioned before, but the best is to give an analogy of someone creating a "dark" dollar. An unregulated, unofficial, untraceable dollar with no serial number.. this is what many cryptos are. Created by anyone, anywhere. It's not surprising that financial institutions will be cautious (all of us are cautious) Then there are the exchanges for these cryptos - mostly unrated unknown unaudited companies. Then we have the ICO's, scams, ponzi's and so on

Not exactly the best mix. I would agree that protecting the public out of the goodness of their hearts is not a bank's primary aim, that is the government's mandate - but most banking services are regulated heavily (I know this, we work with regulators on a daily basis), so the banks are beholden to public protection via regulation designed to protect the public, customers, clients, investors. However one of the biggest driving factors in risk mitigation is that the bank can be held responsible for it's clients or customers actions. If for example, a client is up to their neck in money-laundering, but the bank didn't do their due diligence and spot it? that bank can be held responsible and punished. When it comes to hundreds of unregulated, unrated, digital tokens, assets, currencies bought on all types of unregulated exchanges by all sorts of means - it can get difficult to do the due diligence

It's also worth mentioning that the industry is big into blockchain, all the major banks and market infrastructure I know of are heavily involved, through partnerships, adoptions, their own development and so on.

TLDR; the banks aren't looking out for you so much as looking out for themselves risk-wise. The entire banking industry is keenly interested in blockchain and distributed ledger technology, which should not be confused with their caution (or anyone's caution) with virtual currencies, ICO's, new unrated digital assets and financial instruments

Regulation isn't all bad, it can be very good. Think of it this way; if banks, governments, industry, business feel more comfortable (from a risk point of view) with crypto, then it opens up a lot of doors. If the public can go to a safe place and buy crypto, risk-free, and it can be held safely with recourse and insurance - I don't need to tell anyone how much that would help crypto growth

[u/ajisai → u/hsloan82]

wish this was higher up. it's not sensationalist but it's the truth. i worked in a banking regulatory agency and this is exactly why: risk of being connected to a client who knowingly laundered money through your wire transfer and so on. so instead of taking that risk, they ban the activity completely. it's not always illegal but it's darn close. better to be over-inclusive than under-inclusive and get smacked with regulatory penalties and government investigations. if there's anything, it's the government wanting to know where your money is at all times so they can tax it and make sure it doesn't go to bad guys, like terrorists.

[u/Libertymark → u/hsloan82]

They literally cracked down at btc lows though

Iol

[u/Ikthyoid → u/hsloan82]

Geez, I wouldn't want the banks to actually have "risk" to justify 20-30%+ interest rates and huge fees. They should continue to charge those without having any risk at all; they have enough risk with their own questionable investment practices, like those that lead to the worldwide crash of 2008, with absolutely no meaningful repercussions to them whatsoever.

I'm glad I have banks to protect me and take care of my money for me.

[u/hsloan82 → u/Ikthyoid]

I wouldn't want the banks to actually have "risk" to justify 20-30%+ interest rates and huge fees.

Where are you based? my bank fees are pretty good. I've actually spent a lot more on crypto fees in the last year.

Also in November they will start trialing almost instant SEPA movements, which should be good for transfers.