Coinbase disables new credit cards for US customers

The company considers making similar changes in other markets, including the UK and Canada

Coinbase disables new credit cards for US customers

The leading US exchange operator, Coinbase has announced that it had “disabled adding new credit cards as a payment method” for US-based users of its platforms. The move follows recent reports of major American banks suspending credit card purchases of cryptocurrencies.

In a blog post, published today, the company explained that it “cannot ensure customers will have a positive purchasing experience with a credit card”.

“As a result, we have disabled adding new credit cards as a payment method for US customers,” Coinbase said. “For customers in the UK, EU, Canada, Australia and Singapore, we are collecting feedback and evaluating similar changes.” Coinbase assured its users that it was actively working with card networks and card issuers to find long-term solution.

The owner of the GDAX cryptocurrency exchange also said that users who already had credit cards linked to their Coinbase accounts could continue to make purchases “so long as your bank allows them”.

Earlier this month, it was reported that JPMorgan Chase, Bank of America, Citigroup and Capital One were starting to decline credit card purchases of digital currencies, due to the credit risk associated with cryptocurrency transactions.

It was separately reported that Lloyds Banking Group (LON:LLOY) was making similar moves in the UK. The FTSE 100-listed company said on February 4 that it no longer accepted credit card transactions involving the purchase of cryptocurrencies across “Lloyds Bank, Bank of Scotland, Halifax and MBNA”.

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