Coinbase, the most popular cryptocurrency exchange has announced through its official blog post on Feb 13 that it has disabled adding new credit cards as a payment method for US customers. Coinbase said, however, that debit card payment option remains unaffected by this change.
On Feb 1, Coinbase alerted it’s users that credit card networks are beginning to treat cryptocurrency purchases as cash advances, leading to fees and higher interest rates on these transactions. As a result, Coinbase cannot ensure customers will have a positive purchasing experience with a credit card.
“We know many customers have added credit cards as their primary payment method; we did not make this decision lightly,” the company said in the post. “We are actively working with card networks and card issuers to find a long term solution. For customers in the UK, EU, Canada, Australia and Singapore, we are collecting feedback and evaluating similar changes.”
In addition, the platform said users who have already linked credit cards to the Coinbase platform can continue using them “so long as your bank allows them.”
So far, it has been reported that four banks in the U.S. – JPMorgan Chase, Bank of America, Citi and Capital One – have barred credit card holders from making purchases on the cryptocurrency exchange.
Other banks have also stepped up to impose such regulations. Australia’s Commonwealth Bank announced Wednesday that it will block credit card purchasing on cryptocurrencies, and the U.K.-based Lloyds Banking Group has also previously issued the same policy for several of its subsidiary banks.