Canada’s Second Largest Bank Stops Customers From Buying Cryptocurrencies With Credit Cards

  • Canada's second largest bank now stops customers from buying cryptocurrencies with credit cards
  • Other Canadian banks revealed they were considering making the same move

A global trend in which banks are banning customers from purchasing cryptocurrencies using credit cards is on the rise, and Canada’s second largest bank just joined in. According to local news outlet The Globe and Mail, the Toronto-Dominion Bank (TD) recently announced the move in a statement emailed to its customers.

TD is notably the first major Canadian bank to enact such a policy. The move comes after several major banks throughout the world, including Bank of America, JP Morgan Chase, and Citigroup in the US, and Lloyds Banking Group in the UK, started the trend. Customers in South Africa, Australia, and India face the same ban.

In an emailed statement, a TD representative implied that the bank is halting cryptocurrency purchases with credit cards as a security measure. His email read:

“At TD, we regularly evaluate our policies and security measures, in order to serve and protect our customers, as well as the bank."

Toronto-Dominion spokesperson

The Globe and Mail dug a little deeper, and found that other Canadian banks considered making a similar move, but haven’t yet done so. The Royal Bank of Canada (RBC), the country’s largest bank, revealed that it currently allows cryptocurrency purchases with credit and debit cards, in limited circumstances.

The bank, however, cautions its client against the use of cryptocurrencies, by warning them about the possibility of a sudden drop in their value. This, the bank claims, could “expose them to substantially higher debt levels than they are able to repay.”

In an email to the local news outlet, an RBC spokesperson wrote:

"We understand that regulatory and risk factors related to cryptocurrency continue to evolve and as a result, we are closely reviewing our policies with respect to cryptocurrency transactions."

Royal Bank of Canada spokesperson

The Bank of Nova Scotia, the country’s third largest bank, also revealed it was analyzing a potential ban on cryptocurrency purchases with credit cards. In an emailed statement, a spokesperson for the bank revealed that the organization understands that “regulatory and risk factors related to cryptocurrency continue to evolve,” and as such it’s reviewing its policies.

Other Canadian banks didn’t comment whether they were considering halting cryptocurrency investments with credit cards. TD’s move comes shortly after the Bank of America, the second largest bank in the US, admits cryptocurrencies are a risk to its business in its annual filing with the Securities and Exchange Commission (SEC).

Hacked Exchange Cryptopia Enables Trading in 40 Different Currency Pairs

New Zealand-based digital asset exchange, Cryptopia has reportedly resumed trading on its exchange as it is now allowing 40 different trading pairs. This, after Cryptopia recently experienced from several different security breaches.

Support For Bitcoin, Litecoin, Dogecoin Pairs Added

Cryptopia’s management announced (via Twitter on March 18th) that it is planning to expand its list of coins which will again be supported on its trading platform. As noted on Cryptopia’s official support website, the exchange has enabled several different trading pairs (as of March 19th, 2019) with major cryptocurrencies. These include bitcoin (BTC), litecoin (LTC), and dogecoin (DOGE).

In response to Cryptopia’s announcement, Twitter user @dgb-chilling, a supporter of DigiByte (DGB), a cryptocurrency that uses five different mining algorithms, said that he had emailed the exchange’s support team to inform them regarding the coin’s latest update (version 6.17.2). He added that “an upgrade was recommended but not mandatory.”

Meanwhile, Chuck Norris (@CryptoTweet6) remarked: 

Now this is good news! Let’s hope the rest of the coins will be released for trading swiftly.

Other users also considered it “good news” that the compromised cryptoasset exchange was gradually resuming its operations. However, one social media user asked when Cryptopia would start enabling deposits while another inquired about why his ARK coins were still not recoverable from the trading platform. He claimed that he had deposited 1,000 ARK, currently valued at around $628, (a popular proof-of-stake based coin) on Cryptopia. The user also complained that his coins were missing “missing because [the exchange] did not update the ARK wallet."

Tens Of Millions Of Dollars Stolen In Hack

On February 27th, 2019, Cryptopia’s management announced that it was “assessing the impact incurred as a result of the hack” which led to the theft of tens of millions of dollars in cryptocurrency. Last month, Cryptopia’s support team had also estimated that the total loss incurred due to the security breaches was of around 10% of its total holdings (in the worst-case scenario).

Notably, the exchange’s official Twitter account had been silent for several weeks (since Feburary 14th). However, it released several announcements, starting in late February, in which it revealed that its staff members were working on securing each customer’s account individually. Cryptopia’s management also noted that it was taking the appropriate measures to ensure that its trading platform is secure when it is officially back online.