Danske Bank has officially released its updated position on cryptocurrencies.The largest bank in Denmark recently published a statement which was sub-headed with the title “Reasons to maintain a very cautious approach”.
The four-point notice outlined Danske Bank's position on trading and investing in cryptocurrencies, notably erring on the side of caution when it came to recommending them as an investment choice.
“Cryptocurrencies represent a significant digital innovation in financial services and we recognise that there is a significant global market for crypto currencies and that many customers find cryptocurrencies interesting. At the same time, we see great potentials in the blockchain technology, which cryptocurrencies build upon. However, as a financial institution, Danske Bank for several reasons maintains a very cautious approach towards cryptocurrencies.”
Danske Bank brought up a number of issues that their customers should consider before making any investment into cryptocurrency, including the problem of regulation and transparency that makes it difficult for the bank to ensure financial crime and money laundering requirements are met.
Additionally, the bank brought up the volatility of cryptocurrency being problematic, citing “limited insight into how the market develops and what drives the price”.
The conclusion of the four-point list presented by the bank was a statement that expressed the banks current position on cryptocurrency:
“we cannot currently offer investment advice on cryptocurrencies or financial instruments based on cryptocurrencies. However, we continuously monitor developments in the area of cryptocurrencies, and as the cryptocurrency market matures and is further regulated, we will review our position.”
While Danske bank generally advised against cryptocurrencies, the bank expressed that it would not impede any crypto-related transactions coming to and from cryptocurrency platforms.
“Furthermore, we do not block the use of a credit card issued by Danske Bank in connection with the trading of cryptocurrencies. As with all other credit card transactions, customers must follow applicable anti-money laundering procedures and comply with applicable laws”.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.