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Danske Bank A / S has said it will not lift the ban on trading Bitcoin and other cryptocurrencies on its platforms, despite growing customer interest.
Denmark’s largest bank highlighted a lack of transparency and regulation in crypto trading, in a statement posted on its website. He also cautioned against “volatile and opaque” prices, and noted that the carbon footprint of cryptocurrency mining is at odds with Danskes’ goal of doing sustainable banking.
READ | Charts Indicate Crypto Market Consolidation May End Soon
We recognize that there is a significant global market for cryptocurrencies and that many customers find cryptocurrencies interesting, ”the bank said. However, as a financial institution, Danske Bank, for several reasons, maintains a very cautious approach towards cryptocurrencies.
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Danske, who is still under investigation for money laundering in the United States and Europe, is particularly sensitive to the risk of using crypto assets for financial crime. Meanwhile, Bitcoin and its peers are becoming increasingly popular as several corners of Wall Street provide services that allow customers to trade them.
The head of the Swedish financial regulator, Erik Thedeen, warned earlier this week of a significant risk “that crypto assets could be used for criminal purposes. Financial firms need to consider whether they really want to invest or encourage growth. “of these assets. , especially when they have no obvious legitimate and valuable use, ”he said.
Thedeen also said carbon emissions caused by Bitcoin mining is another reason companies should think carefully “before they touch these crypto assets.
In the Nordic region, where cash is being replaced by digital payments at a faster rate than in most other parts of the world, the biggest banks are united in their skepticism of cryptocurrencies. Nordea Bank Abp also bans Bitcoin and won’t even let employees trade it.
Danske said a lot depends on how well cryptocurrencies might one day be properly regulated. If that were to happen, the bank would reconsider its position, he said.
Danske said he was waiting to see how developments under new European Union law, the Regulation of Crypto Asset Markets (MiCA), progress.
We are continuously monitoring developments in the cryptocurrency arena, and as the cryptocurrency market matures and becomes more regulated, we will review our position, “he said.
This story was posted from an agency feed with no text editing. Only the title has been changed.
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