NO CREDIT TO CRYPTOS
dubai — Banks in the UAE have decided that they would not allow purchase of cryptocurrencies through credit cards and also not entertain digital currency for remittances.
Banks in the UK and the US have also banned use of credit cards to buy Bitcoin and other cryptocurrencies, fearing plunge in their value will leave customers unable to repay their debts. Lloyds Banking Group, JP Morgan Chase and Citigroup have banned their credit card customers from buying cryptocurrencies.
Banks in the UAE have also reportedly instructed their employees not to allow transactions via their bank accounts relating to cryptocurrencies. Bankers say that the ban on virtual currencies is aimed at protecting their customers from falling prey to frauds resulting from transactions undertaken through such unsecure methods.
Banks do not want to be held liable for transactions undertaken via cryptocurrencies. Online trading in cryptocurrencies is a high risk that breeds much room for embezzlement.
“Globally, we have made the decision to no longer permit credit card purchases of cryptocurrency. We will continue to review our policy as this market evolves,” Citi bank said in a statement to Khaleej Times.
Emirates NBD, Dubai’s largest bank, also confirmed that it doesn’t accept cryptocurrencies for
Cryptocurrencies are still not widely accepted as payment instruments although the number of companies accepting them has increased over the past few years Mohamed Damak, Primary credit analyst, S&P