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February 26, 2018updated 24 Jan 2022 6:41am

Canada’s TD Bank bans credit card use for bitcoin purchase

Canada-based Toronto-Dominion Bank (TD) has notified its customers regarding the decision to ban the use of credit card to purchase digital currencies such as bitcoin.

The move comes after TD announced earlier this month that customers can use credit and debit cards for cryptocurrency purchases as long as the acceptance of Visa, Mastercard, Interac or Visa debit is authorised.

According to the bank, the new regulation comes as it regularly evaluates policies and security measures to ‘serve and protect customers, as well as the bank’.

TD is said to be the first Canadian bank to join the major financial companies such as Lloyds Bank, JP Morgan Chase, Bank of America, Commonwealth Bank of Australia (CBA), Bank of Thailand (BOT) and Virgin Money that are implementing similar policies.

Other banks in Canada are yet to implement the ban, including Royal Bank of Canada (RBC) that is currently allowing credit and debit cards for cryptocurrency-based transactions but warned its customers on volatility of these currencies.

In an e-mailed statement, RBC said: “We do recognise that regulatory, risk and other external environmental factors relating to cryptocurrency continues to evolve. As such, we continue to review our policies to consider how we can best support clients.”

The Bank of Nova Scotia also said that it is closely reviewing the policies related to cryptocurrency transactions.

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