Wells Fargo Prohibits Use of Its Credit Card in Cryptocurrency Purchases

There is a growing number of financial firms that have issued a ban on buying cryptocurrencies using their credit cards. J.P. Morgan, Citigroup, and Bank of America have all prohibited their clients from performing these purchases as they see multiple risks associated with such transactions, Cointelegraph reported.

Now, Wells Fargo has joined this group citing a similar concern. To be specific, the banking juggernauts are apprehensive about the volatility of the market and how people can be easily hooked by its high-risk, high-reward nature.

Indeed, there are already institutions that are treating people addicted to the trading of crypto. The first to ever cater to such patients is Castle Craig Hospital located in Peeblesshire, Scotland, where crypto addicts – as they are referred to – can learn to take control of their unhealthy trading tendencies.

Experts are tailoring the treatments after those used with gambling addicts as they’re seeing similar behavior in affected individuals. Crypto addicts have developed a detrimental habit of monitoring the rise and fall of cryptocurrency they invested in, checking their phones or computers constantly.

“The high risk, fluctuating cryptocurrency market appeals to the problem gambler. It provides excitement and an escape from reality. Bitcoin, for example, has been heavily traded and huge gains and losses were made. It’s a classic bubble situation,” said Chris Burn, a gambling therapist.

A study published last year by online marketplace LendEDU yielded data that 18 percent of credit card owners used their card to purchase Bitcoin. Of that number, 22 percent ended up not being able to pay for their loans, resulting in losses for the bank.

Data on the crypto market shows that this nascent industry is losing its appeal to investors as cryptocurrencies are suffering a drop in value. As of this writing, Bitcoin has now fallen to $6,844 following a devastating blow during the weekend partly due to a scare caused by a hacking incident that hit a small South Korean exchange.