It is becoming more difficult to buy Bitcoin with credit card in Canada since TD Bank halts bitcoin purchase with credit card.
The second largest bank in Canada, Toronto-Dominion Bank, conducted a study of the cryptocurrency market. Bank decided to prohibit clients to use their credit cards to purchase cryptocurrencies including Bitcoin.
This decision followed by actions of several U.S. banks which stopped allowing credit card purchases of Bitcoin and other cryptocurrencies.
“At TD, we regularly evaluate our policies and security measures, in order to serve and protect our customers, as well as the bank,” a TD representative said in an emailed statement Friday.
This announcement to ban Bitcoin purchases came in spite of statement made earlier to Bloomberg. On February 5, TD representative claimed that TD customers could still buy cryptocurrencies with both debit and credit cards.
Royal Bank of Canada
Royal Bank of Canada allows its customers to purchase cryptocurrency using credit and debit cards only in limited circumstances. However, the RBC warned its customers about the possibility of a sharp fall of cryptocurrency market and the risks associated with the inability to cover debts.
“We do recognize that regulatory, risk and other external environmental factors relating to cryptocurrency continues to evolve,” bank’ representative claimed in an emailed statement. “As such, we continue to review our policies to consider how we can best support clients.”
The Bank of Nova Scotia is also looking closely at its cryptocurrency policy and probably in near future it will make the similar announcement.
The Canadian Imperial Bank of Commerce and the Bank of Montreal did not make any comment on it.
It is likely that other Canadian banks, which currently prefer to observe the process of developing of cryptocurrency market, will also decide to move on to greater actions, as well as major international banks.
Obviously, banks are trying to lower potential risk to both themselves and Canadian credit card holders.
The Bitcoin price increased last year, trading for more than C$20,000 per Bitcoin.
Since that time, Bitcoin value dropped and now and trades for around C$12,000. But it significantly increased from where it was a year ago.
If you are planning to play at Canadian Bitcoin casinos and considering options for buying Bitcoin, you can read our user guide How to Buy Bitcoin and Store It.