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Why Banks Are Blocking Cryptocurrency Transaction

Cryptocurrency is still growing and on a roll to acquire the market. The recent past has seen its fair share of ups and downs in the cryptocurrency but there are certain sections where it has faced a drawback.

Banks are still not acquired to cryptocurrency market. They have been blocking the cryptocurrency transaction for quite some time now. In the current novel coronavirus pandemic situation new users have joined the market.

However, one of their growing concerns is that their cards might be blocked. The reason can solely be due to the purchase of cryptocurrency.

A June 2020 survey conducted by The Tokenist found that 45% of respondents from 17 countries now prefer to invest in Bitcoin rather than stocks.

The growth of Bitcoin is due to people who are quite unfamiliar with the crypto world. Meanwhile, there are two main categories of reasons that can lead to blocking cryptocurrency transactions.

Argentina displayed the most striking ban on crypto to bank transaction. Local authorities first lowered the limit on the purchase of foreign currency from $10,000 to $200 United States dollars per month back in 2019.

The government in Argentina imposed a ban on the purchase of crypto with bank cards. It was followed by a 30% tax on purchases in foreign currency.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.