Nordea, the Nordic region’s biggest bank, said Monday it will ban its roughly 31,000 employees from trading cryptocurrencies as of February 28 due to the unregulated nature of the market and high risks. This is reported by Reuters.
The reason why employees are prohibited from investing in cryptocurrencies is that the risks are considered too high and the protection for both employees and the bank is insufficient.
Nordea said in a statement
The bank added that unlike trading of securities and currencies, trade of cryptocurrencies is not regulated by any authority, and as such investors who buy cryptocurrencies have no protection against illegal business practices and money laundering.
Employees who currently own cryptocurrencies will not be forced to sell them, but they will not be allowed to buy more, bank said.
In early December, we have reported that Merrill Lynch bank banned its customers and consultants who carry out transactions on their behalf to buy bitcoin through the Grayscale Investment Trust.