Danske Bank, the largest bank in Denmark, laid out its official position on cryptocurrencies on June 17, when it published a four-point notice describing reasons to be careful when trading in digital assets.
While the bank urged users to exercise caution, it stopped short of taking any practical stance against cryptocurrency. The bank stated that it won’t offer any cryptocurrency services to its customers itself, but also that it wouldn’t interfere with transactions coming from crypto platforms.
“For customers that deposit funds that stem from investments in cryptocurrencies, we will treat them in the same way as deposits of funds from other types of investments,” stated the bank.
The bank also said that it saw no problem with its credit cards being used in connection with cryptocurrency trading platforms, assuming customary Anti-Money Laundering laws were satisfied.
“Furthermore, we do not block the use of a credit card issued by Danske Bank in connection with the trading of cryptocurrencies. As with all other credit card transactions, customers must follow applicable anti-money laundering procedures and comply with applicable laws,” stated the bank.
The bank acknowledged that cryptocurrencies represented a “significant digital innovation in financial services,” and said it had registered interest in the technology from many of its customers. The bank also praised the potential of blockchain technology, but ultimately laid out four reasons to maintain a cautious approach when dealing with cryptocurrencies.
The bank highlighted a lack of transparency when dealing with financial crime in the crypto space. It also noted a lack of regulation and consumer protection measures, the volatile nature of cryptocurrency pricing, and the environmental impact of a technology that requires “very large amounts of computing power.”
Danske Bank said it generally advised against trading in cryptocurrencies, however, it also added that it continuously monitored the crypto space and would review its position as the market matures and is more fully regulated.