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Danske Bank A / S says that despite growing customer interest, it will not lift a ban on trading Bitcoin and other cryptocurrencies on its platforms.
Denmark’s largest bank pointed to a lack of transparency and regulation in crypto trading statement on his website. It also warned of volatile and “opaque” prices and noticed that the carbon footprint of mining cryptocurrencies is at odds with Danske’s goal of sustainable banking.
“We know that there is a significant global market for cryptocurrencies and that many customers find cryptocurrencies interesting,” the bank said. “As a financial institution, however, Danske Bank is taking a very cautious approach for a number of reasons across from Cryptocurrencies. “
Danske, who is still under investigation for money laundering in the US and Europe, is particularly sensitive to the risk of crypto assets being used for financial crime. Meanwhile, Bitcoin and its competitors are growing in popularity as several corners of Wall Street offer services that customers can trade with.
The head of the Swedish financial regulator Erik Thedeen warned earlier this week of a “significant risk” that crypto assets could be used for criminal purposes. “Financial firms need to wonder whether they are really investing in such assets or promoting their growth,” especially when they “do not have obviously valuable legitimate use,” he said.
Thedeen also said the carbon emissions caused by bitcoin mining are another reason companies should “think carefully” before touching such crypto assets.
In the Nordic region, where cash is being replaced by digital payments faster than most other parts of the world, the largest banks are unanimous in their skepticism towards cryptocurrencies. Nordea Bank Abp also bans Bitcoin and doesn’t even let employees trade with it.
Danske said a lot depends on the extent to which cryptocurrencies could one day be properly regulated. Should this ever happen, the bank will review its position, it said.
Danske said it will wait and see how the new European Union legislation, the Regulation of Crypto Assets Markets (MiCA), unfolds.
“We are continuously monitoring developments in the field of cryptocurrencies, and as the cryptocurrency market matures and is further regulated, we will review our position,” it said.
– With the support of Kati Pohjanpalo
(Adds comment from the Swedish regulator)