The bank is also phasing out the options currently available to investors that allow them to buy financial instruments such as derivatives through cryptocurrencies. It argues that the absence of a central bank to back cryptocurrency means that investors and consumers are not protected in the same way that they are with traditional currencies and investments. It is concerned by the lack of transparency regarding the underlying value of cryptocurrencies and the potential losses that could ensue from such highly volatile instruments.
Danske Bank is also worried that cryptocurrencies can be a vehicle for money laundering and financial crime. It will, however, allow customers to deposit funds originating from cryptocurrency investments providing the deposit complies with anti-money laundering procedures. Customers can also continue using credit cards to trade cryptocurrencies.
Danske Bank is working with a consortium of other Nordic banks to explore the creation of a pan-Nordic payment system to create the worlds first area for domestic and cross-border payments in multiple currencies.
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