In a recent update, leading crypto startup Coinbase has announced that US-based customers would no longer be able to add new credit cards as a payment method on its platform.
Recently, a number of banking majors in the U.S. including JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc., said that they are halting cryptocurrency purchases using credit cards.
“As you may have seen in our previous update or in the news, some credit card issuers have started placing restrictions or additional fees on credit card purchases of digital currency,” Coinbase said. “As a result, we have disabled adding new credit cards as a payment method for US customers. Debit cards remain unaffected by this change.”
However, the company said that it is actively working with card networks and card issuers to find a long term solution to the issue. It is also gathering feedback from its customers based in the UK, EU, Canada, Australia and Singapore.
Earlier this month, Lloyds Banking Group, a major financial services group in the UK, banned its customers from using credit cards to buy bitcoin.
Coinbase also announced its plans to enable SegWit compatible Bitcoin sends and receives for all customers in the near future.
