Danske Bank reveals its official position on cryptocurrencies
Danske Bank is very cautious on crypto but also assured that it won’t stop or interfere with transactions coming from crypto platforms.
Fri, 18 Jun 2021, 11:27 am UTC
Danske Bank revealed its official position on cryptocurrencies in a notice published on June 17. While Denmark’s largest bank said it is very cautious when it comes to crypto, it also assured that it won’t stop or interfere with transactions coming from crypto platforms.
“In recent years, cryptocurrencies such as bitcoin and ethereum have received significant attention from investors and media, and Danske Bank regularly receives questions on this topic from customers, journalists, and other stakeholders,” the bank said.
While the bank sees crypto as innovative and acknowledged the potential of blockchain technology, it remains very cautious when it comes to crypto. “Cryptocurrencies represent a significant digital innovation in financial services and we recognize that there is a significant global market for cryptocurrencies and that many customers find cryptocurrencies interesting,” the bank added. “However, as a financial institution, Danske Bank for several reasons maintains a very cautious approach towards cryptocurrencies.”
The bank cited several reasons for its very cautious approach. Danske Bank said that the lack of transparency could make it difficult to fight money laundering, the lack of consumer protection as crypto is only partially regulated, the volatility of crypto prices make them unsuitable to investors with limited knowledge on digital assets, and the impact on the environment for certain cryptocurrencies that “require very large amounts of computing power.”
“For these reasons, it is at present not possible to trade cryptocurrencies or financial instruments based on cryptocurrencies on Danske Bank's trading platforms, and we generally advise against investing in such assets,” the bank explained. “Thus, we cannot currently offer investment advice on cryptocurrencies or financial instruments based on cryptocurrencies.”
While the bank is not offering crypto-related services, it also assured that it won’t interfere with money from crypto activities. “For customers that deposit funds that stem from investments in cryptocurrencies, we will treat them in the same way as deposits of funds from other types of investments,” Danske Bank said. “Accordingly, we may accept the deposit if it complies with applicable law and follows anti-money laundering procedures.”
It also sees no issue with its credit cards being used in crypto trading. “Furthermore, we do not block the use of a credit card issued by Danske Bank in connection with the trading of cryptocurrencies,” the bank added. “As with all other credit card transactions, customers must follow applicable anti-money laundering procedures and comply with applicable laws.”
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