June 18, 2021, | AtoZ Markets- Danske Bank for several reasons maintains a very cautious approach towards cryptocurrencies.
The bank has highlighted that the cryptocurrencies such as bitcoin and ethereum have received significant attention from investors and media, and the cryptocurrencies represent a significant digital innovation in financial services, but for now the bank has decided not to participate in this type of market.
For these reasons, it is at present not possible to trade cryptocurrencies or financial instruments based on cryptocurrencies on Danske Bank's trading platforms, and the bank generally advise against investing in such assets.
Why the Bank Does Not Agree with Cryptocurrencies?
In its statement, Danske Bank has made clear the risks that this type of asset offers, mentioning that:
- Trade in cryptocurrencies is not always sufficiently transparent, which may make it difficult for us as a financial institution to meet our obligations to fight financial crime and money laundering.
- Is only partially regulated by financial regulation and consumers therefore do not always have the consumer protection associated with regulated financial products.
- Pricing of cryptocurrencies is opaque and highly fluctuating, and as an investor, you have limited insight into how the market develops and what drives the price.
- Transactions with certain cryptocurrencies require very large amounts of computing power that are extremely energy intensive, and this is in not in line with Danske Bank's ambition to promote sustainable development together with our customers.
However, Danske Bank continually monitors developments in the crypto arena and as the crypto market matures and becomes more regulated, it will review its position.
Credit Card Transactions and Deposits Related to Cryptocurrencies
For customers that deposit funds that stem from investments in crypto currencies we may accept the deposit if it complies with applicable law and follows anti-money laundering procedures.
Furthermore, we do not block the use of a credit card issued by Danske Bank in connection with the trading of cryptocurrencies.
As with all other credit card transactions, customers must follow applicable anti-money laundering procedures and comply with applicable laws.
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