Credit card holders from four U.S. banks have been barred from purchasing cryptocurrencies using credit cards at Coinbase, the exchange has confirmed.
According to the firm's latest tweet, credit card users from JPMorgan Chase, Bank of America, Citi and Capital One are all currently prohibited from purchasing cryptocurrencies at the platform.
However, other payment channels such as debit cards and bank transfer are still available, and are being encouraged by Coinbase as alternatives for affected customers.
The notice came as a confirmation to a recent report that Chase, Bank of America and Citi had launched the ban starting in early February over fears that credit card users may run up debt if the prices of cryptocurrencies drop. It further indicates that the restriction also extends to Capital One, another major credit card issuer in the U.S.
Data from CoinMarketCap also indicates that the total cryptocurrency market capitalization slumped today to under $300 billion for the first time since Nov. 25, 2017.
The trend to bar bitcoin buying with credit cards is not just being seen in the U.S. market.
As reported yesterday, British banking group Lloyds has also reportedly blocked card holders from several of its major subsidiaries – including Halifax, MBNA and Bank of Scotland – from purchasing bitcoin on credit.
Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in Coinbase.
Credit cards image via Shutterstock
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.