Leading Danish bank, Danske Bank, has published a document announcing that the company does not wish to “support the investment environment surrounding cryptocurrencies.” Danske bank will “phase out the possibility of” its customers purchasing financial instruments comprising cryptocurrency derivatives. Despite the bank’s concerns pertaining to the risks associated with cryptocurrencies, Danske customers will still be able to purchase virtual currencies via credit card.
Also Read: Iranian Officials Issue Contradictory Statements Regarding Telegram Ban
Danske Publishes Dismissive Appraisal of Cryptocurrency Markets
Danske Bank has published a document outlining its “negative position” with regard to cryptocurrencies. Established in 1871, Danske Bank operates in over a dozen countries and is one of Denmark’s largest retail banks.
The document outlines a number of concerns it holds regarding cryptocurrencies, stating that “They lack the investor and consumer protection typically connected with traditional currencies and investments.”
Danske Bank “Strongly Recommend[s] That [its] Customers Avoid Investing in Cryptocurrencies”
Danske asserts that “the price formation [for cryptocurrencies] is non-transparent,” claiming that “As an investor, [one] ha[s] very limited insight to how the market is developing and what is driving the price.” The high volatility of the virtual currency markets is also emphasized.
“Most importantly,” the bank states, “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 laundering or extortion.” Danske adds that it has “an obligation to assist in the fight against financial crime and money laundering,” concluding that “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,” Danske states, “it is not possible to
