The Bank of Montreal has begun blocking cryptocurrency transactions on its credit and debit cards, according to an affected customer who posted a letter from the bank on Reddit.
The letter says that the decision was made “to protect the security of our clients and the bank” from the “volatile nature of cryptocurrencies”. Customers attempting to make cryptocurrency transactions using a BMO credit card, debit card, or online payment service will be presented with a message informing them that this is not possible. The new policy is effective immediately.
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Interestingly, only a few days ago we reported on that same bank agreeing to provide banking services to a new brokerage platform that will be handling cryptocurrencies. The new operation will be processing only Bitcoin and Ethereum initially, but will offer additional coins if there is demand.
The platform is to be opened by TMX Group, owner of the Toronto Stock Exchange and myriad Canadian financial companies such as TSX Venture Exchange, TSX Alpha Exchange, the Canadian Depository for Securities, the Montréal Exchange and the Canadian Derivatives Clearing Corporation, to name but a few. It has an office in Montréal.
The fact that the bank will process the cryptocurrency requests of brokerage companies but not of its customers could be seen as a contradictory policy; Finance Magnates reached out to the bank for comment, and will update the article if a reply is received.