Bank of Sweden Implements Bitcoin Ban in All Departments

In a move that could cause the European Banking Federation to reconsider its stance on cryptocurrencies, the largest Scandinavian bank has banned its employees from trading Bitcoin and other cryptocurrencies.

As Nordea Bank EU spokesperson Afroditi Kellberg stated on the phone, Nordea The board of directors has decided to take an opposing stance due to the “uncontrolled nature” of the cryptocurrency market, and the ban will apply from February 28.. By the end of the third quarter, the bank had around 31,500 employees.

Danske Bank A/S, the second largest Scandinavian bank, said it favored its employees not trading Bitcoin, but was unsure about the necessity of the ban.. “We are skeptical about cryptocurrencies and we tell our employees not to engage in such trades, but we do not enforce a ban,” said Danske spokesperson Kenni Leth.. “We are currently reviewing the situation, time will tell if there will be an official ban.”

As they stated in their email to Bloomberg, Nordea company policy “contains temporary provisions for employees holding cryptocurrencies and allows some exceptions. ” Employees who already own Bitcoin are “free to hold their shares.” The bank has already started enforcing the ban on its employees in the wholesale unit.

Customers

Neither Nordea nor Danske stated that they do not provide any platform where their customers can trade cryptocurrencies.. “Due to the lack of maturity and transparency of existing cryptocurrencies, we have decided not to include such securities on our investment platforms,” said Leth of Danske.. In an interview in Stockholm, the CEO called Bitcoin an “irrational absurdity” and also said that there is a lot of evidence that Bitcoin is used purely for financial crimes.

The Big Picture

European Banking Spokesperson Raymond Frenken states that the Federation has not yet taken an official position on cryptocurrencies.. But he added that if firms start enforcing their own bans, the institution will have to take a clear stance.

“If banks like Nordea are to adopt firm policies on this issue—which we’ve heard from the ECB and other central bankers looking into it—that’s what will change.. With developments like these, this issue needs to be discussed in the context of the European Banking Federation.”

Nordea also talked about many potential risks, from lack of security of investors, from volatility to liquidity and financial crimes.. “Given these major risks and our role in maintaining high standards in banking management, Nordea does not support their employees’ investments in cryptocurrencies,” says Nordea.. “This may indeed be a first.”

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