Australian bank bars credit card purchase of cryptocurrency

The decision comes into effect as of February 14, 2018
14 February 2018   778

Commonwealth bank of Australia made an annoncement today of it blocking all CommBank credit cards from buying virtual currencies, like Bitcoin. Given the unpredictability and lack of regulation of the cryptocurrency market, customers of CBA as of today, February 14, will no longer be able to acquire this type of currency with CBA or Bankwest cards. The bank compared the standards of the traditional currencies and of the virtual ones and concluded that the virtual currencies do not satisfy even the minimum standards.

However, clients of CBA can still purchase the virtual currency via transaction accounts and debit cards. Besides, the situation with cryptocurrencies is highly dynamic and the bank’s position is constantly reviewed.

Thus, CBA has become the first Australian bank to officially forbid the purchase of the virtual currency to its clients. And in doing so joined a notorious list of UK (Lloyds) and US (JPMorgan, Bank of America, Citi) banks with similar restrictions. Despite the regretable decision, other Austalia banks like ANZ or Westpac have not and will not place any similar restrictions. So the CBA’s decision is highly unlikely to become a trend.

SEC to Need More Info on BTC ETF

SEC is gathering more input from the public – to date, according to the agency, more than 1,400 comments have been submitted
21 September 2018   170

The US Securities and Exchange Commission (SEC) announced the beginning of a formal process for considering the application for the creation of bitcoin-ETF from the New York companies VanEck and SolidX. Nevertheless, the agency appealed to the community for more information. This is stated in the document published on the SEC website.

Institution of such proceedings is appropriate at this time in view of the legal and policy issues raised by the proposed rule change. Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved. Rather, as described below, the Commission seeks and encourages interested persons to provide comments on the proposed rule change.

The US Securities and Exchange Commission

At the moment, the SEC received about 1,400 comments.

According to the document, the Chicago Board Options Exchange (CBOE) has signed an agreement on the exchange of data on bitcoin transactions, trading and the state of the market with the cryptocurrency trading platform with Gemini.

The agency asked commentators to clarify the position of Gemini in the digital currency market and assess the likelihood of increased volatility at this site in connection with possible trades of bitcoin-ETF.

So, before September 30, the department had to decide on whether to approve, deny or initiate the proceedings. The SEC chose the latter, which is likely to delay the process until the next year.