Bank of America has Considered Cryptocurrencies as a Business Risk

Source : Bank of America has Considered Cryptocurrencies as a Business Risk
Cryptocurrencies are Threat to its business says Bank of America
The second largest U.S bank described in its annual report that Cryptocurrencies are a threat to its business model.
The report was determined on Feb. 22 and registered with the US Securities and Exchange Commission (), it has also listed a range of economic, geopolitical, and operational risks that the Charlotte, NC-based bank faces since it is heading towards the new financial year.
The bank described:
“[C]lients may choose to conduct business with other market participants who engage in business or offer products in areas we deem speculative or risky, such as cryptocurrencies.”
The bank also included that widespread adoption of cryptocurrencies and other FinTech innovations could require the bank to make “substantial expenditures” while updating its existing services and remain competitive with upstart firms.
The bank included:
“The widespread adoption of new technologies, including internet services, cryptocurrencies, and payment systems, could require substantial expenditures to modify or adapt our existing products and services.”
While calling it as the fundamental risks to its business model, Bank of America told that cryptocurrencies and the emerging technologies could limit the institution’s capacity while complying with anti-money laundering regulations.
The bank stated:
“Emerging technologies, such as cryptocurrencies, could limit our ability to track the movement of funds. Our ability to comply with these laws is dependent on our ability to improve detection and reporting capabilities and reduce variation in control processes and oversight accountability.”
Recently, Bank of America and announced that it would ban the customers who would buy cryptocurrencies through credit cards. Following their announcements, other major banks such as Australian Bank CBA, UK’s Lloyds Bank, Barclays Bank also announced the ban on purchasing cryptocurrencies with credit cards. But, did not ban their customers who purchase cryptocurrencies using credit cards, instead of banning, the bank issued a warning to its customers.

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