Commonwealth Bank blocks credit card cryptocurrency purchases
Debit cards are still fine, but no more crypto with CBA or Bankwest credit cards.
"Due to the unregulated and highly volatile nature of virtual currencies, customers will no longer be able to use their CommBank credit cards to buy virtual currencies. This will come into effect as of 14 February 2018," Commonwealth Bank announced.
"Our customers can continue to buy and sell virtual currencies using other CommBank transaction accounts, and their debit cards. We have made this decision because we believe virtual currencies do not meet the minimum standard of regulation, reliability and reputation when compared to currencies that we offer to our customers. Given the dynamic, volatile nature of virtual currency markets, this position is regularly reviewed."
Many other banks have blocked credit card cryptocurrency purchases, most likely to avoid the possibility of their customers racking up cryptocurrency debt which goes unpaid after a market crash.
"Virtual currencies are unregulated and, as has been made clear in recent months, highly volatile. We no longer feel it appropriate to authorise credit card purchases for these currencies."
You can still receive deposits from cryptocurrency exchanges onto your card, and this only applies to Commonwealth Bank and Bankwest credit cards. Debit cards, bank deposits and everything else should still work as intended. At the time of writing, none of the other Australian banks has blocked crypto credit card purchases, but it's possible that some will follow suit in the near future.
There are a number of ways to buy cryptocurrency with credit card in Australia, but not with a Commbank card anymore.
- Hash Wars: Bitcoin Cash ABC takes early lead, but its not over yet
- CoinDesk unveils the “Crypto-Economics Explorer”
- Ledger releases colourful new Ledger Nano S family, up to 30% off
- Cryptocurrency crash: Here’s why the markets are plummeting
- Independent Reserve has a new KPMG cryptocurrency tax estimator
Disclosure: At the time of writing the author holds ETH, IOTA, ICX, VEN, XLM, XRB, SALT