How "crypto shirts" Currencies Work - A Brief Overview Of forex shirts, The news headlines this week is that several banks in the USA and the UK have banned the use of charge cards to purchase crypto currencies (CC's). The stated reasons are impossible to think - like wanting to curtail money laundering, gambling, and protecting the retail investor from excessive risk. Interestingly, the banks enables debit card purchases, which makes it clear that the sole risks being protected are their own. With a bank card you are able to gamble at a casino, buy guns, drugs, alcohol, pornography, everything and anything you want, however, many banks and bank card companies wish to prohibit you from employing their facilities to purchase crypto currencies? There has to be some believable reasons, and they are NOT the reasons stated. Something that banks are afraid of is how difficult it would be to confiscate CC holdings once the bank card holder defaults on payment. It'd be more difficult than re-possessing a house or a car. A crypto wallet's private keys could be placed on a memory stick or a bit of paper and easily removed from the nation, with minimum trace of its whereabouts. There can be a high value in certain crypto wallets, and the credit card debt may never be repaid, resulting in a declaration of bankruptcy and a significant loss for the bank. The wallet still contains the crypto currency, and the owner can later access the private keys and work with a local CC Exchange in a foreign country to convert and pocket the money. A nefarious scenario indeed. We're most certainly not advocating this kind of unlawful behavior, nevertheless the banks are aware of the likelihood and many of them wish to shut it down. This can't happen with debit cards as the banks are never out-of-pocket - the money comes from the account immediately, and only if you have enough of your money there to start with. We struggle to find any honesty in the bank's story about curtailing gambling and risk taking. It's interesting that Canadian banks are not jumping on this bandwagon, perhaps realizing that the stated reasons for doing so can be bogus. The fallout from these actions is that investors and people are now conscious that bank card companies and banks really do have the capacity to restrict what you can get using their credit card. This is not how they advertise their cards, and it is likely a shock to most users, who're quite used to deciding for themselves what they'll purchase, especially from CC Exchanges and all the other merchants who have established Merchant Agreements with these banks. The Exchanges have inked nothing wrong - neither perhaps you have - but fear and greed in the banking industry is causing strange what to happen. This further illustrates the amount to that your banking industry feels threatened by Crypto Currencies. Now there is little cooperation, trust, or understanding between the fiat money world and the CC world. The CC world doesn't have central controlling body where regulations can be implemented over the board, and that leaves each country around the globe trying to determine what things to do. China has made a decision to ban CC's, Singapore and Japan embrace them, and many other countries remain scratching their heads. What they've in common is that they wish to collect taxes on CC investment profits. This isn't too unlike early days of digital music, with the net facilitating the unfettered proliferation and distribution of unlicensed music. Digital music licensing schemes were eventually developed and accepted, as listeners were OK with paying a little something because of their music, rather than endless pirating, and the music industry (artists, producers, record companies) were OK with reasonable licensing fees rather than nothing. Can there be compromise in the continuing future of fiat and digital currencies? As forex people around the world have more
frustrated with outrageous bank profits and bank overreach into their lives, there is hope that consumers is likely to be regarded with respect and not be forever saddled with high costs and unwarranted restrictions.