On Friday (June 18), Copenhagen-headquartered Danske Bank A/S published an article to clarify its position on “trading and investing in cryptocurrencies”.

The bank started this article by acknowledging the value in blockchain technology and cryptocurrencies:

“Cryptocurrencies represent a significant digital innovation in financial services and we recognise that there is a significant global market for crypto currencies and that many customers find cryptocurrencies interesting. At the same time, we see great potentials in the blockchain technology, which cryptocurrencies build upon.“

It then explained why” it is at present not possible to trade cryptocurrencies or financial instruments based on cryptocurrencies on Danske Bank’s trading platforms” and why they generally advise against investing in crypto:

  • “Trade in cryptocurrencies is not always sufficiently transparent, which may make it difficult for us as a financial institution to meet our obligations to fight financial crime and money laundering.“
  • “Trade in cryptocurrencies is only partially regulated by financial regulation and consumers therefore do not always have the consumer protection associated with regulated financial products.“
  • “Pricing of cryptocurrencies is opaque and highly fluctuating, and as an investor, you have limited insight into how the market develops and what drives the price.“
  • “Transactions with certain cryptocurrencies require very large amounts of computing power that are extremely energy intensive, and this is in not in line with Danske Bank’s ambition to promote sustainable development together with our customers.“

However, as “the cryptocurrency market matures and is further regulated”, it will review its stance on crypto.

As for “credit card transactions and deposits related to crypto currencies”, it had this message for its customers:

“For customers that deposit funds that stem from investments in crypto currencies, we will treat them in the same way as deposits of funds from other types of investments. Accordingly, we may accept the deposit if it complies with applicable law and follows anti-money laundering procedures.

“Furthermore, we do not block the use of a credit card issued by Danske Bank in connection with the trading of cryptocurrencies. As with all other credit card transactions, customers must follow applicable anti-money laundering procedures and comply with applicable laws.“

DISCLAIMER

The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.

IMAGE CREDIT

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