Following the footsteps of several major banks around the world, the Toronto-Dominion Bank (TD ), one of the largest in North America, announced in an email statement to customers on Friday, Feb. 23, that it prohibited the purchase of cryptocurrency with credit cards, according to local newspaper The Globe and Mail
A representative of TD, the first major Canadian bank To adopt such a ban, stated that the bank regularly assesses its policies and security measures “in order to serve and protect our customers , as well as the bank. ”
TD’s move is part of a larger global trend of banks barring customers from buying cryptocurrency credit cards. The wave of bans was initiated by US giants JP Morgan Chase, Bank of America and Citigroup on Feb. 3, followed by Britain’s largest bank, Lloyds Banking Group, Feb. 5, and Virgin Money in Australia , in South Africa. Last week, Citibank India decided to ban credit and debit cards for crypto purchases.
According to The Globe and Mail, February 23, the Royal Bank of Canada has made it clear that it authorizes purchases of credit and debit card cryptocurrency, but it warns its customers of high volatility risks that “could expose them to significantly higher debt levels than they are able to repay”.
On February 13, the Canadian stock market announced that it would soon launch its own Blockchain-based securities clearing and settlement platform to help companies raise money through the intermediary of fully regulated security tokens issued by the stock exchange.