Coinbase Cuts Off New Credit Cards for US Customers
Coinbase Cuts Off New Credit Cards for US Customers by Wolfie Zhao – Coin Desk
TDC Note – No cryptos for you – one year! Or perhaps never. What about all those customers they were adding day after day, month after month?
Cryptocurrency startup Coinbase said Tuesday that its U.S.-based users won’t be able to add new credit cards as a payment option.
Making the announcement through its official blog post on Feb. 13, Coinbase said the platform currently is unable to offer a smooth credit card purchase experience. As a result, it has “disabled adding new credit cards as a payment method for U.S. customers.”
The move is a follow-up to the platform’s previous confirmation that credit cards issued by four U.S. banks are barred from being used to buy cryptocurrencies. Coinbase said, however, that debit cards remain as a payment option.
“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.”
As reported previously, at least 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 exchange.
Other banks have moved more broadly to impose such impositions. 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.
Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in Coinbase.