Various banks all over the world prevent their customers from buying or selling cryptocurrency.
That is not a positive development, as people should be free to spend their money as they please. Unfortunately, that is not how the world works right now. Capital One is the latest bank on a growing list of banks blocking cryptocurrency-related transactions.
Various complaints can be found across all of social media as we speak.
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Capital One Refuses to Process Bitcoin Transactions
It is not the first time a major bank has decided to not process customer requests related to Bitcoin or other cryptocurrencies. These incidents usually involve people looking to buy Bitcoin, but they can also pertain to those individuals selling cryptocurrency. In the case of Capital One, one of the biggest US banks, it is no longer allowing users to buy crypto.
As is usually the case, your individual mileage may vary when it comes to using this bank’s payment methods as of right now.
We have been informed by multiple users that Capital One has prevented them from buying Bitcoin.
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This mainly applies to people who rely on the Coinbase exchange, although it seems likely other exchanges will be affected by this development as well.
More specifically, people using a Capital One credit card have a higher chance of running into problems right now than those relying on a regular bank transfer.
However, neither payment method is reliable as of right now.
Capital One users who try to purchase Bitcoin or other cryptocurrencies right now will notice that their transactions are not being processed. Unlike other banks, this particular financial institution seemingly doesn’t notify customers regarding blocked transactions either, which is rather worrisome.
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Instead, users will find out when the exchange contacts them directly regarding the transaction seemingly not coming through. It’s a pretty annoying turn of events, especially because there was no prior indication that Capital One would be taking such an aggressive stance.
According to one Reddit user, he got in touch with Capital One to ask what was going on.
The response he received was that all exchanges have been officially blocked by the bank as of this week.
There will undoubtedly be some platforms which can still be used in conjunction with a Capital One credit card or bank account, but it may prove difficult to find such companies right now. It is evident the banking system has no love lost for cryptocurrencies, and financial institutions will continue to crack down on this type of activity for quite some time to come.
All of this further confirms that big banks are slowly becoming useless when it comes to buying cryptocurrencies.
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Instead, credit unions may be the best option for any US customer looking to get their hands on Bitcoin or any other cryptocurrency capable of being purchased with fiat currency. Whether or not this news will lead to people switching from Capital One to a completely different bank or institution remains to be determined, though.
The big question is why Capital One has made this decision all of a sudden.
It is certainly a move that will upset a lot of people and create some negative PR at the same time. While cryptocurrency may still be considered a niche market right now, interest in Bitcoin and altcoins has never been higher. If enough people ditch Capital One because of its aggressive stance toward cryptocurrencies, interesting things may happen in the future.
It seems highly unlikely that will be the case, though.