Crypto Trading Will Remain Unavailable with Danske Bank
Denmark’s biggest lender, Danske Bank recently outlined its position on trading and investing in cryptocurrencies in an announcement.
As detailed in the official press release, the bank concedes that cryptocurrencies represent a significant digital innovation in financial services and it recognises that there is a significant global market for crypto currencies and that many customers find cryptocurrencies interesting. However, as a financial institution, Danske Bank for several reasons maintains a very cautious approach towards cryptocurrencies.
Below are the reasons for its its cautious approach against cryptos:
“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.
Trade in cryptocurrencies 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 its customers.
At present, it is not possible to trade cryptocurrencies or financial instruments based on cryptocurrencies on Danske Bank’s trading platforms. The bank generally advises against investing in such assets. In addition, the bank also not offer investment advice on cryptocurrencies or financial instruments based on cryptocurrencies right now.
Notably, the bank will not block the use of a credit card 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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