Danske Bank will not block credit cards used in cryptocurrency trading, according to its newly announced position on cryptocurrencies. The Danish bank would also accept deposits related to crypto investments, although it follows a cautious approach to decentralized digital assets.
Denmark’s largest bank explains its stance on cryptocurrencies
Answering growing questions from customers and other stakeholders, Danske Bank released an official position on cryptocurrencies. “In recent years, cryptocurrencies like bitcoin and ethereum have received significant attention from investors and the media,” the bank noted, outlining its current stance on cryptocurrency trading and investing.
Denmark’s largest banking institution acknowledges that “cryptocurrencies represent a significant digital innovation in financial services” and praises the “great potentials in the blockchain technology.” At the same time it continues to support “a very cautious approach to cryptocurrencies.” The bank listed several reasons for this.
First, Danske is having a hard time fulfilling his duties to fight financial crime and money laundering, because crypto business “is not always transparent enough.” Prices are opaque and fluctuating, the bank added, leaving investors with limited market understanding.
In addition, because cryptocurrency trading is only partially regulated, customers do not receive the same level of consumer protection that comes with other financial products, Danske insisted. The bank also feels that the “extremely energy-intensive” processing of cryptocurrency transactions collides with its own ambition to promote sustainable development.
Crib Investors Welcome To Deposit Funds With Danske
Citing these concerns, Danske Bank reminded customers that its platforms do not currently support the trading of cryptocurrencies and crypto-based financial instruments. The financial institution has also advised against investing in digital assets or related products in general. However, the Danish banking group has pledged its support for the development of cryptocurrencies under the new EU legislation called Regulation of Markets in Cryptographic Assets (MiCA) emphasizing:
We are constantly monitoring developments in the area of cryptocurrencies, and as the cryptocurrency market matures and is further regulated, we will review our position.
Despite his hesitant attitude towards cryptocurrencies, Danske does not completely turn his back on cryptocurrencies and investors. For example, the bank said it does not block credit cards when they are used in crypto business, provided customers comply with applicable rules and laws against money laundering. The bank also stressed that it will deal with deposits of funds derived from cryptocurrency investments as well as deposits of any other type of investment.
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