Denmark’s biggest bank, Danske Bank, recently made its stance on cryptocurrencies known. While the bank remains hesitant about cryptocurrencies and exercises caution, it has nevertheless stated that its clients shall not be prevented from using cryptocurrencies in conjunction with various cryptocurrency platforms.
The bank had revealed its stance yesterday, on the 17th of June 2021, around the time when it had published its own four-point notice, which described all the reasons detailing the need to exercise caution when it came to trading via digital assets.
Danske Bank will not help, but it will not stand in the way either
Although the bank wants users to be careful, it has also made it clear that it shall not do anything to stop its users from participating in the crypto craze. To that end, the bank shall not be offering any kind of crypto services itself. However, it will also not do anything to prevent the transactions based on cryptocurrency from occurring either.
Danske Bank representatives, therefore, stated that customers who choose to deposit funds that may stem from crypto-based investments should be treated in the exact same manner as deposits from any other investment type. Furthermore, the bank also sees absolutely no issue with its own credit cards being utilized for the purposes of cryptocurrency transactions, as long as customers do not use the cards to take part in any illicit or illegal activities such as money laundering or financing terrorist operations.
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‘Blockchain has potential, but we must be cautious, says Danske Bank
Danske Bank made it a point to acknowledge that cryptocurrencies have indeed skyrocketed in popularity and represent an important digital innovation as far as the world of financial services goes. With that being said, although the bank has a keen interest in cryptocurrencies and the technology behind the success exhibited by the crypto industry, even going so far as to praise blockchain technology and all of its latent potential, it nevertheless once again stated that caution should be exercised.
This is due to a number of reasons, chief among which is the lack of overall transparency. Cryptocurrencies are still being understood, and many such criminals often use crypto to carry out activities based on malicious intent. Also, the lack of consumer protection and regulation is a cause for concern, as hacks are common when it comes to cryptocurrency exchanges and protocols. Lastly, the volatile and unpredictable nature of crypto combined with its adverse impact on the ecosystem additionally contributes towards the bank’s decision to remain hesitant as far as the new digital asset class is concerned.