Three major banks confirm that they won’t allow cryptocurrency transactions with their credit cards (2024)

FAQs

Which banks don t allow cryptocurrency? ›

Credit card issuers such as American Express, Chase, Capital One, and Citi all allow crypto purchases and treat them as a cash advance.

Cash advance penalties from the card issuer

Your credit card issuer is likely to consider the crypto purchase a cash advance, as if you used your credit card to take money out of an ATM. That's bad for you because it probably comes with these downsides: Cash advance fee.

Money laundering is an ever-present issue with digital assets, and because of that banks also choose not to allow cryptocurrency purchases.

Wells Fargo has announced that it will begin to block all cryptocurrency purchases on credit cards under the Wells Fargo name.

TLDR: Unfortunately, Chase Bank does not currently offer crypto-investing services through its online banking platform. If you want to buy crypto assets with Chase bank, you will need to use a secure and regulated cryptocurrency exchange.

Bank of America: Does not permit crypto purchases with any of its credit cards.

The Bank of America has never restricted its clients from buying and selling cryptocurrencies through authorized and licensed cryptocurrency exchanges like Uphold. Their exchange is registered with FinCEN as a Money Services Business and is licensed to operate in the US by FINRA.

TLDR: Currently, Wells Fargo doesn't offer any way for clients to invest in cryptocurrency directly through the bank. So, if you want to invest in crypto with your Wells Fargo account, you will have to use a cryptocurrency exchange. Always stick to one that is trustworthy and regulated by FinCEN in the US.

A credit card is just one of many ways to buy crypto. Although credit cards incur higher transaction fees, they are simple, instant, and don't require cash on hand.

Does crypto allow credit cards? ›

Crypto.com, a Singapore-based cryptocurrency exchange platform, is allowing its 50 million users to begin purchasing crypto on its app using a debit or credit card connected to Google Pay, according to a recent press release.

Which US banks are crypto-friendly? There are many crypto-friendly banks in the US, including Ally Bank, Simple Bank, USAA, Chase, and Bank of America.

“Customers can no longer use their Wells Fargo credit cards to purchase cryptocurrency. We're doing this in order to be consistent across the Wells Fargo enterprise due to the multiple risks associated with this volatile investment. This decision is in line with the overall industry,” a spokesperson said at the time.

Yes, Capital One allows investors to buy Bitcoin, Ethereum and other cryptocurrencies with their Capital One Credit Cards. This includes popular cards like the Platinum Mastercard, Venture Rewards Card, QuicksilverOne Rewards Card and more.

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Bank of America (BofA) said it will not be making moves into cryptocurrency anytime soon. The bank's CEO claims that the reason for hesitation lies with the heavy regulations the bank is subject to. Prices of many several digital asset are down over 50%.

Many people see crypto as a threat to the traditional financial industry. But surprisingly, some banks are crypto-friendly. Some big banks even allow you to buy digital assets.

The Bank of America has never restricted its clients from buying and selling cryptocurrencies through authorized and licensed cryptocurrency exchanges like Uphold. Their exchange is registered with FinCEN as a Money Services Business and is licensed to operate in the US by FINRA.

Because it is anonymous, crypto is being used by fraudsters to launder money, which in turn is a headache for the banks who don't know where the money in their accounts has really come from.

Where is crypto not accepted? ›

According to the U.S. Library of Congress, as of November 2021, a total of nine countries have banned cryptocurrency completely. These countries are Algeria, Bangladesh, China, Egypt, Iraq, Morocco, Nepal, Qatar and Tunisia.

Ally Bank is a crypto-friendly bank for cryptocurrency enthusiasts in the United States. This banking service operates 24/7. This bank allows people to purchase and sell cryptocurrencies via Coinbase. It allows you to credit to purchase Bitcoin and other cryptos from exchanges.

For example, Coin Metrics (with the backing of Goldman Sachs and BNY Mellon) offers crypto-related market intelligence, network data, indexes, and network risk solutions, whereas Amberdata (with Citigroup as a participating investor), offers data and insights related to blockchain networks, DeFi, and crypto.

In this current cycle, the most active investors based on the number of investments in blockchain companies are KB Financial Group (8), United Overseas Bank (7), Citigroup (6), Goldman Sachs (5), and Commonwealth Bank of Australia (4).