Following in the footsteps of JP Morgan and other U.S.-based financial institutions, Canada’s fourth largest bank has now blocked their account holders from purchasing cryptocurrencies using debit and credit cards.
Customer at the Bank Of Montreal received the following letter alerting them to the change. According to the bank, the move is the result of “volatile nature of cryptocurrencies” and to protect customer security.
Curiously, just weeks ago it was reported that the bank’s parent company, BMO Financial Group, agreed to offer services for a new brokerage platform for the trading of cryptocurrencies like Bitcoin and Ethereum. The platform, however, is not designed for bank retail customers, but rather, for large institutions.
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
The full letter to customer of BMO:
Effective immediately, BMO will be blocking cryptocurrency merchant transactions. This decision was made due to the volatile nature of cryptocurrencies, and to better protect the security of our clients and the bank.