Bitcoin Forum

JP Morgan is aiming to ban CC on February 3rd and Bank of America to ban CC on February 2nd.


Looks like for right now they will only be banning CC purchases, which is not as bad as it sounds. If someone steals your CC and maxes it out buying cryptocurrency, then that could be a huge problem. Plus people can likely max it out as a way of getting "lent" money they cant afford to pay back.

As long as you can make Bank wires, and Debit card purchases this really shouldn't be a big deal.






Source: https://www.coindesk.com/report-bank-america-jp-morgan-ban-credit-crypto-purchases/


Also dont forget Bank of America has a patent for an exchange system : https://www.coindesk.com/bank-of-america-outlines-cryptocurrency-exchange-system-in-patent-award/

Is anyone concerned about this?

It's a good move. Too many people lost money they didn't have by speculating on Bitcoin in the last gold rush.

Concerned? No. It is just one more nail in the coffin of the credit card industry. They should not be singling crypto out like this. But, I'm actually just surprised they waited this long. Maybe the new attention is a good sign because it shows they now finally see crypto as competition.

On the other hand, a lot of people also made huge profits during last years gold rush. You should not deny that fact. Bitcoin is a speculative investment and everyone knows the risk around it. So if someone starts screaming after the price gone down, it's their own fault. Bitcoin's price will have fluctuations, so an investor should know when to enter and when to pull out the plug.

Now if someone have bought bitcoin at the wrong time and sold at lower price, it is their own fault and their own greed. Not every person can be happy in the speculative market. JPM was always against the bitcoin and cryptos and BA has joined the party recently. They will come up with more bans, just wait and watch.  

Breaking news? Banks were already blocking crypto related transfers and refused to put crypto related money on their cards. JP Morgan CEO is already famous for his anti bitcoin sights and spreading FUD in 2017. Since the last year Warren Buffett (he has been saying several times that cryptocurrencies will come to a bad ending) bought  a big part of Bank of America so there is nothing strange that this bank is providing this kind of policy.
Do not spread extea FUD. Nothing changed.

It is news. I know someone who used a BoA CC last week to make a purchase. The policy is new.

It isn't helpful to the market to reduce people's options into getting Bitcoin.

I don't like it at all, it's already hard enough for some to buy crypto currencies with their regular bank accounts.

one more time  banks trying to stop people buying BTC these banks are trying to stop members forever but bitcoin is decentralised

so, in fact they stop people from making low purchases, controlling how people spend their own money.
It seems to me that this is not illegal, is it?

So you're supporting the babysitting policy. People can't handle their money, lets limit their options so they can be happy and never gain or lose anything. Mediocre, balanced society where there are no rich or poor but everyone has exactly the same is what we're aiming at, right?
People are irresponsible, let's be responsible for them, let's take their money and decide for them.

It's another proof that your money don't actually belong to you and that you should avoid banks at all cost. What next? They will monitor your CC purchases and block you from making "bad" decisions? Too much alcohol in your diet - transaction denied, buy another drink instead! Cigarettes? That's a big nono, transaction denied!

I do think people should be responsible with their money to some degree. We need better awareness with cryptocurrency, and actual sites that will educate the youth. ( This is just a humanity awareness )  However with Credit Cards, banks dont care if people mismanage personally. They care when someone gets hacked and then buys $1k, $2k (whatever it may be ) worth of cryptocurrency and they have to back it up. Although if someone buys what they can not afford it will hurt the bank as well. Which is why they will let debit cards continue. If you wanna buy $1k of bitcoin but really cant afford it, as long as you have the $1k available then you can buy it.

They do have some points on some areas where those CC would be lost then those coins inside would be lost too and it is really a huge problem but as a user we are really know the risk.I believe the true aim on this kind of banning cc purchases is that they do already saw that there is already a competition regarding on this are. They shows that they can block things that they want.

This makes cryptocurrency more decantralized and nobody concern about this i guess. This is just easy attempts to finish bitcoin. There will be more like this. Just ignore them and look at your way.

How is this the bank trying to finish bitcoin? To my knowledge you can still use bank wires and debit cards. So it is really just to save the banks from having to pay out when users get hacked and the scammers use the cc to buy bitcoin which cant be charged back.

It’s been bad for a while... BoA “froze” my debit card and cancelled my purchase the first time I tried to use coinbase.  I had to call and authorize the use, and try again.  Which again froze my account and cancelled the purchase.  I had to call again and it worked the 3rd time ...

And that was my debit card, it was my money.  This is why people are getting into crypto.  Banks trying to control how you spend your own money, and the reason they give you for locking your account is “suspicious behavior”?  It’s like they are admitting they so unsecured that the can’t tell a real purchase from a scammer, so they overreact to protect themselves, and inconvience you.

It doesn’t surprise me they are now stopping CC purchases, but When you have an 800+ credit score, a perfect payment record, and pay it off in full every month, it does kind of piss you off.

not really. it's sensible, in a way. bitcoin/altcoins are speculative assets. they are investments. nobody should be buying them on credit. and knowing how markets work, a lot of people probably maxed out credit cards buying on the way to $20k and are now sitting on huge paper losses. plus, buying with credit cards = cash advance fees, which is basically the highest rate you can pay.

if you really need to run a balance cuz you got that itch to buy some coins, you should at least shift your day-to-day expenses to credit cards and ACH/wire money to an exchange. screw paying cash advance rates. it's not like they are cutting off exchanges from the banking system.

the day these big banks will no longer dictate the rules of finance

This is just how the sponsored media presents their head or news that will trigger panic selling. I was alarmed by the title of this write up but on reading it further, i discovered that the content was not as bad as the title. I am looking forward, when the capital base of cryptocurrencies are more evenly distributed , i don't think we will happen like this.

Banks slitting their own throats. Watch them cry in a few years when crypto exchanges start cutting ties and refusing to deal with problem banks, and the banks lose customers every time it happens because we need our exchanges more than we need the banks.

there's a fundamental problem, though. BTC is highly dependent on fiat gateways (and altcoin markets depend on BTC). more than anything, it's used as a speculative asset (via fiat investment). so, BTC doesn't have any sort of circular or sustainable economy. in this context, banks (and governments) could probably affect the markets more than we'd like to think.

the international nature of some exchanges helps, but at a fundamental level, the banking system can be controlled if a handful of banks (or a handful of nation-states) wills it. that means that exchanges can largely be cut off from the banking system. that could have a pretty drastic effect on public perception and price discovery. it wouldn't destroy anything, but the effects would be greater than people anticipate IMO.

It is a good thing that they are stopping CC payments. You can still use bank accounts and debit cards.

so it means crypto is more powerful than bank.so i love bitcoin more and more now.

What makes it more powerful now...?

Maybe he's referring to the fact that more and more financial institutions are preventing people from buying crypto on credit, which can indeed be seen as some sort of a sign that they don't want it to grow further.

By preventing people from buying crypto on credit, they at least made an attempt to potentially halt Bitcoin's growth, but it won't have any impact at all. It requires an extra step, but credit can still be used to buy Bitcoin with.

The larger Bitcoin grows, the more financial institutions acknowledge that Bitcoin might end up taking over a large part of the market they for decades ruled with iron fist. It's time for a change, and that change is called Bitcoin.

Banks will never accept it out of free will, but eventually they have to. If you can't beat it on your own, then adapting to the situation is the only thing left to do, and that's banks adopting Bitcoin one way or another.

How does that mean the banks dont want it to grow? When people get hacked and bitcoins are bought, the banks are paying that out... you have to remember that most people are not very educated in cryptocurrency or even finance and will be over buying.




IMO BOA is a terrible banking solution anyway so I wouldnt use them.

Too many people have bought too much cryptocurrencies and paid with credit cards, in fact they spend money they don't have. They were hoping to pay back with eventual profits they could make with the price rise of the crypto they bought. If that does not work out and they lose, they're in big trouble. This is what the bank of America wants to prevent.

This is exactly right, so I dont really see it as a bad thing. They are not trying to stop people from buying crypto, they just want to stop people from over purchasing.

This is the other way to look at it. Crypto has a big movement and it's interest, awareness and knowledge is growing year on year. If the movement goes the way many predict, the banks will be kicking themselves.

I think its pretty easy to avoid this as a problem by depositing funds from a credit card into some kind of intermediary and then using that to buy bitcoin. Virwox, for example, accepts PayPal, Skrill and a few other payment options. They also used to accept credit cards; I'm not sure but maybe this is restricted by country.

I also think bitcoin was more of a theoretical threat to traditional banking, and is now no longer a threat at all. When the price goes up, transaction fees skyrocket and its no longer viable as a currency. Now you have the financial sector actively investing in crypto because there's profits to be made by exploiting volatility through pumps and dumps the likes of which crypto has never seen.

Anyway, if people are creative about it, there's always a route through which you can purchase bitcoin. Where there's a will, there's a way.

Remember when you put your money in a bank it is no longer your money, the money belongs to the banks and they can do with it whatever they want, only when you are able to successfully withdraw the money from the bank that money belongs to you again, this is why you must not feed the system, having your money in the bank makes them more powerful, if it is a low amount keep it in your home and if it is a big amount you will need to find to store it in some other way which does not involve banks.

I think bank doesn't want for crypto to grow because its a competitor. Bitcoin for examples takes away third party, which is banks. So their potential profits is already lost. That's why government thinks that crypto is do disruptive because it will make banks obsolete. This is the same argument that they have been throwing since day one they stage an attack on crypto's.


Exactly, and most banks will make you maintain certain amounts, so when your money fall below it, they will deduct a fee. As opposed to crypto which not only eliminated them, but you have total control, hence you are your own bank. So it only makes sense for BoA to banned cyrpto buying with their payment system.

P2P exchanges coming in lmao. Like Bitfinex used to do with its customers.

good those who bought last year in January or February who scraped the cards to buy and sold in December of 2017 made a fortune but tremendous are millionaires haor those who bought expensive if they lost and were indebted so is the market

They have to do this as more and more people were buying BTC and other coins by reading heads of the news with no knowlehdge what technology is behind that! They take loans in the hope that just the another day they will become rich. But this approach is not  normal and had to be stopped by the big banks.

I do agree that this had to be done and isnt a bad thing.

It's nothing to do with trying to halt bitcoin's growth. It's to do with credit card chargebacks.

I expect some people bought bitcoin at the top, and when the price fell tried to do a chargeback without giving back the coins.

If banks block fiat gateways people will be forced to use BTC as currency if they wish to avoid their "investment" to die off. If possibility for withdrawal to bank account will be stopped, cryptocurrency market will be totally separate of fiat market.⭐️

The banks are not banning any gate ways here,they just stopped providing service to credit card being used to purchase cryptocurrency and with the price of bitcoin soaring,people were using credit cards to purchase the coin to make profit and when the price crashed ,many people were stuck with it and so the banks have to take a decision to deal with it.

I think they banned it just for now they will get back after few months. Bitcoin back up by cash and vice versa. IF they don't want to use it to buy bitcoin using CC then debit card will be good as payment. correct me if i'm wrong!

No.

If Mastercard or Visa ban cryptocurrency purchases, we should be worried. But one bank doesn't mean anything to us, especially Bank of America. JP Morgan is an investment house, and while they offer debit cards for their wealthy clients to spend cash out of investment accounts their customer base is significantly smaller than Bank of America and comprised of people that will still buy Bitcoin regardless of whether they can use a JP Morgan card.

More and more people buy cryptocurrencies with borrowed money. People who have no idea of cryptocurrencies or trading. Some of them lose mone and can't pay it back to the bank. A bank is no charity organisation, they want to earn money as well. I assume the banks have evaluated if they lose or make money with clients who invest in cryptocurrencies, and then they have acted on that result.

Bank of America and JP morgan don't like Bitcoin.

This is totally understandable and quite wise actually. People in the USA were buying Bitcoins on credit, without actually having money. This is not really possible on large scale in Europe, but quite normal in the USA. Now, to buy Bitcoins without having the money necessary to buy them IS-NOT-GOOD. Especially if that becomes a large scale behavior.

I dont think this news means they dont like it.

This is just part of the regulations that are necessary for the cryptos. Sooner or later more regulations like this will be applied, in the interest of the people of course.

Is this suppose to be bad news for cryptocurrencies?

Since cryptos have high volatility,such banks have taken such a decision .Otherwise they would have to suffer loss when customers buy cryptos using credit cards and don't pay back when crypto prices fall down.In future,it would be followed by other banks too.Purchases using debit cards doesn't seem to have such issues.

Not me, especially that i hate using credit cards because it will drive you to be indebt. In fact lot of people are now in trouble on how to settle their debt with the banks and regretting that they should not own and use these cards so better we stay away from these type of cards and focus to support Bitcoin and other digital currencies that it can be use in any establishments. Anyway JP morgan is already very famous of hating Bitcoin so there is no big deal about this news.

No debit cards are fine, and I don't see them banning that for awhile.

They tried the alcohol thing in the twenties with the prohibition in the US and it did not work which is why the war against illegal drugs it is never going to be won and it is just a big money sink, those that are addicted and those that use drugs recreatively will keep doing so whether drugs are legal or illegal and those that do not use them will keep abstaining from the consumption of drugs regardless of their legal status, so babysitting policies need to stop but it is unlikely that is going to happen since there is a lot of money there.

Well that's not a smart way of looking at it.  The fact of the matter is right now (at least in the united states) using a credit card is very important for many peoples future.  First off using cash makes little to no sense here in the U.S. and it makes me sick seeing it.  Using a credit card allows one to build "credit" which is VERY important.  Also, most credit cards offer rewards for using those cards.  Personally I use an airline card and get great benefits from this card ( a lot of free flights).

It is true too many people were buying bitcoin on credit they don't have to re-pay.  That's just as dangerous as buying anything on credit with money you don't have.  Don't just ignore CC's, but be smart about them.

Why is that? How is Europe different in this respect?

In reality, I think the problem was fairly limited. To begin with, cash advance limits are only a small fraction of overall credit limits. And exchange limits on credit cards are very low due to fraud risk, so I doubt credit cards purchases are a significant portion of global investment.

Having said that, a recent study showed that 22% of those buying with credit cards weren't immediately paying off their balances (https://bitcointalk.org/index.php?topic=2706246.msg27679638#msg27679638). Reckless people are reckless! But that doesn't mean that the middle class is swimming in debt from buying Bitcoin.


That's all irrelevant here. Credit card companies have been snooping on peoples' purchases and leveling adverse action on their accounts for "risky behavior" for decades. AMEX is infamous for this. They are private companies. This is their privilege.

I am from the US and so I was looking at the US market, but I am sure it is the same around the world. I just don't think this is a huge issue since you can use debit cards. If you have the money then you should be allowed to buy it, if you are buying it with a credit card and using a companies money as a short term loan, then they have the right to tell you not to buy.

They are talking about credit cards, not debit cards and checking accounts.  Your available credit isn't your money, it belongs to the creditor.

Chase and BOA are telling people that they cannot buy crypto with the credit card companies money.

Thats what State bank of India is doing too but it has gone a step ahead by deciding not only to ban CC purchases but also debit card purchases.That's the beauty of SBI.Lets hope that not other banks follow such a move.

Does the State Bank of India also ban funding crypto purchases with funds from checking and savings accounts or is it just with credit and debit cards?  I don't know how the banking system in India works, but I would just move my fiat to a bank that allowed it.

There are lots of options in the usa as far as banking goes.  We have local credit unions, regional banks, and big banks like BOA and JP Morgan Chase. 

I don't see an all out ban throughout the banking systems in the United States, unless it happens due to government regulation.  And after listening to the audio from the U.S. Senate hearing regarding crypto last week, it appears they have no intention of causing harm to anyone involved in the industry, other than those that are doing harm themselves.  Scam ICO's, BitConnect type pyramid schemes, ect.

1) I was under impression that VISA and MAsterCard has banned all crypto purchases outside of EU.
2) In any case it is understandablesince US has amazingly poor security regarding CC purchases, seems that they are still living in 90s.

1)  No ... The US is outside of the EU and Visa/Mastercard has not banned crypto purchases.
2) What do you mean that the US has poor security regarding CC purchases.  The consumer has very good security.  If you end up with an unauthorized charged, the cc company will charge it back, and give you your money back.

Breaking news,

Well hmm If I had billions of dollars and a bank what would I do. Buy all the companies in the town where I own the bank. Fire everyone and take over all the property. JP Morgans Grandpa made over 20 billion during the worst depression is us history.

Bitcoin.

Well hmm if i had billions of dollars and a bank what would I do. Yes. Buy all the options to sell that expire today which happen to sell out on the first day at 17,500 Chicago exchange on the first day they listed. Then tell all my traders they would be fired if they sell any. While I buy the options to sell it last weds at 17,500.  :)

But for that I would need a forex and lots of asian traders.
Hmmmm What exactly were the traders you hired that your being investigated for? So far they found the asian,saudi  ones probably they should check south africa too ;0

Sorry but the chinese are taking over the ico's and 4 billion wongs do make it right :P
https://www.irs.gov/newsroom/irs-virtual-currency-guidance
Yes strange indeed how just after all the darkweb busts and the amount of crypto the US Gov holds probably is a bit worth a bit more then the ohh 231 billion in gold in for knox.


Crypto is here to stay. Enjoy the ride..

The more ya know ;)


I once told a man to sell everything he owned and buy at 60....
Now I get free plane rides.

1) ok, i just RE-researched the issue . The article which stated that crypto purchases is banned outside EU was questionable without any sources. Couldn't find additional sources also.
2) They Do have poor security.
 First of all US stil have widely used CC which can be used only with your signature. Which means that there is no security on the CC, everyone can imitate signature in such level.
 In EU when web purchases are made there almost always is 2 step verification needed.

Offcourse you can make a charge back. But in this case the seller is scammed because most of the times the product is shipped or service provided. that means that seller has lost their time , whiich is lost money.
Not to mention the work hours whicih are lost due these kinds of charge backs. it slows the whole economy down as a whole.

This is old news i am replying to, I know that but this is relevant anyway because this happens all over the world with banks doing this. what they don't know is that people will stop using them if they continue this way...

I hope this move has a positive effect on consumers as it will cut the investment with debit which is not a good thing and as the saying goes don`t invest what you can`t afford. Hope somehow it reduces investing with debt.

I believe it was only credit card purchases that were banned because of uncleared regulation. It was not that the banks don't allow purchases in general. It's better to get the facts straight.

Yes, that was the case in the United States.

Very Many people do not want to depend on work and work even on bitcoins, but for some reason many do not dare.

What does that even mean?  You make zero sense.

This is definitely a good move that is going to address security concerns with respect to stolen credit cards. In the case of stolen CC's being used to buy anonymous tokens like Monero, Dash or Verge, it would become almost impossible to track. Would like to see the other side of this move as well as we will be witnessing people who buy cryptos with CC complaining about the move as a setback.

Yeah I certainly dont see it as being a bad thing.

Credit card purchases are not always good because of overdrafts of future funds for such high-risk activities. The use of credit cards to purchase cryptocurrencies is banned, which would be better for investors and at least reduce the financial burden.