Why do not people ask for credit cards and bitcoins?

In the past few days, several large banks have banned customers to buy Bitco by credit card. These news, of course, have already caused Bitcoin prices to fall even harder. Among the banks denying cryptographic money transactions via credit card are the Bank of America, J.P. Morgan, Capital One and Discover; In the UK, Lloyds Banking Group (including HBOS and MBNA) and Virgin Money. It is expected that a few banks will make a similar decision after such big banks have made this decision.

After the decision of the banks, the banks of the crypto money community were pushed into the bottom of the bank. Some crypto money advocates allege violations of "user rights" of banks. One of the questions that was used to criticize the banks' decision was "should the banks be able to check the transactions made by someone they have already approved the account?"

The point to be mentioned here and above is actually the difference between a bank card and a credit card. Credit cards give you a kind of loan when you allow you to spend the money you already have in your account. When a bank lends it to you, it has a certain control over how that money is spent. Because the bank on your name gives you "debt". He wants to make sure he gets it back because he can get it back.

That is why banks in the United Kingdom prohibit people from receiving crypto money using credit cards. So clear up, people are still able to get crypto money by using a bank card because the money on the bank cards belongs to them. What the banks worry about is that people who "borrow" money from the bank using credit cards have to go through this debt money to make a risky investment. This is actually something that needs to be understood a little bit because the banks want their money back rightly. If a person who invests in a loan from a bank receives a very serious loss when the price of Bitcoin drops, it may become unable to pay the debts to the bank. That's exactly what banks want to protect themselves.

The crypto money market, especially Bitcoin, has become quite popular after the enormous growth that occurred in December, but what we are trying to emphasize on the Koin Bulletin is that the crypto money market is actually still very small. The total volume of the crypto money market is now around $ 300 billion. When we look at it alone, this amount is yes, it is big, but let's compare it with other markets. The total volume of stocks that can be used as investment vehicles is around $ 55 trillion. The total volume of the real estate market is more than $ 200 trillion. The total gold value is estimated to be around $ 8 trillion. We can see that the crypto money market is actually still smaller. The crypto money market is very small compared to some other markets. The transactions made using credit cards in the crypto money market are very few compared to other transactions. So, in fact, it was argued that there were so many transactions that banks would have to make such a decision. The damage that so little credit card processing would give to the bank would not be too much, but the damage that can happen to the people can be quite high.

Another reason lies behind the decision of the banks to make such a decision. As mentioned above, some people claim that they violate the "user rights" of the banks and that they do not comply with the terms and conditions of the cards. Unfortunately, this is not true, because banks can be held accountable for what people do with their credit card. As a result, credit card conditions and conditions generally deny that banks can refuse transactions. For example, Lloyd Bank, which forbids credit card and crypto money, has the following terms and conditions:

"14.6 If we (or any other company within the Lloyd Banking Group) have violated any legal obligation or are unable to perform or take action that we believe to be incompatible with any government or regulator of us (or any other company within the Lloyd Banking Group) we may refuse to allow your deposit. In addition, we may decide not to process your payment from a limited number of countries / countries, or to refuse to pay your card to these countries. If you ask us or try to pay there, we'll tell you what these countries are. "

This article is of course used to prevent money laundering and comply with certain sanctions requirements. It is understandable that the banks are worried about such issues. Many large banks in Western countries have been fined money for certain amounts of money laundering or complying with sanctions requirements. For example, in 2015, the French bank BNP Paribas was fined $ 8.9 billion for failing to comply with sanctions requirements by US regulators. With all of this in mind, we can understand why banks do not want people to get crypt money using their credit card.

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