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A spokesman for the bank confirmed the ban in a statement that could negatively impact the fortunates of Monero on virtual markets by prompting investors to lose confidence.
They said: “I can confirm that we no longer allow the purchase of cryptocurrencies via Interac Online Payments or by using a retail consumer Mastercard-branded credit or debit card.”
Rumours of the ban had been swirling after pictures emerged on discussion site Reddit of an alleged email sent to employees of the bank explaining the decision had been taken due to the “volatile nature” of cryptocurrencies.
The email stated: “This decision was made due to the volatile nature of cryptocurrencies, and so to better protect the security of our clients and the bank.”
The decision taken by the Canadian bank follows moves taken by Denmark’s largest bank, Danske Bank, that recently published a statement urging its customers to “refrain from investing in the field” of cryptocurrencies.
It read: “We have a negative position towards cryptocurrencies and strongly recommend that our customers refrain from investing in the field.
“Over the past years, cryptocurrencies such as Bitcoin, Ethereum and Monero have gained widespread attention among consumers and investors in many countries.
“First of all, cryptocurrencies differ from traditional currencies in the sense that they are not backed by a central bank.
“They lack the investor and consumer protection typically connected with traditional currencies and investments.”
“Secondly, cryptocurrencies have turned out to be highly volatile, and the price formation is non-transparent.
“As an investor, you have very limited insight to how the market is developing and what is driving the price.”
The document highlighted cryptocurrencies, such as Monero, “lack transparency” and stated they are a “target for criminal purposes”.
It went on: “Thirdly, and most importantly, the lack of transparency and regulatory control have made cryptocurrencies a target for criminal purposes and we know that they on several occasions have been involved in criminal transactions like money laundering or extortion.
“As a financial institution, we have an obligation to assist in the fight against financial crime and money laundering.
“At the current stage, cryptocurrencies do not offer the sufficient level of transparency in order for us to live up to our obligations within anti money laundering regulation.
“For these reasons, it is not possible to trade cryptocurrencies on our trading platforms.
“However, we monitor the market closely, and if the cryptocurrency market becomes more transparent and mature, we might reconsider this position.”
Such a document highlighting the volatile nature of cryptocurrencies could cause investors to lose confidence in the cryptocurrency market, causing Monero values to fall.
Monero is currently trading at $170.28 (£120.73) at the time of writing.
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