ban bitcoin

Earlier this month, cryptocurrency brokerage platform Coinbase abruptly stopped allowing US customers to add new credit cards to their accounts.The policy change came at the tail end of an industry-wide crackdown among credit card issuers on cryptocurrency-related purchases.

On Feb. 13, Coinbase published its weekly product update. Buried at the bottom of this particular update is a significant policy shift, which involves rescinding the ability of US customers to add credit cards — one of the easiest and fastest methods to buy bitcoin — to their accounts.

“At the moment, Coinbase cannot ensure customers will have a positive purchasing experience with a credit card,” the company explained. “As a result, we have disabled adding new credit cards as a payment method for US customers. Debit cards remain unaffected by this change.”

Several weeks earlier, credit card issuers including Visa and Mastercard began recategorizing Coinbase-related purchases as “cash advances,” which significantly increased the fees associated with this payment method.

Many customers were confused about the new charges and blamed Coinbase, even though the brokerage platform had no control over the charges and did not profit from them. Consequently, the company decided to stop accepting new credit cards altogether, although customers who currently have cards attached to their account will be grandfathered into the new policy.

“We know many customers have added credit cards as their primary payment method; we did not make this decision lightly,” the company said. “We are actively working with card networks and card issuers to find a long term solution.”

As BlockExplorer reported, a cadre of the world’s largest financial institutions — including JPMorgan, Citigroup, Bank of America, Discover, and Capital One — have recently banned their customers from using credit cards to buy bitcoin, citing credit risk and AML/KYC concerns.

Credit card processors have also terminated relationships with card issuers that have produced cryptocurrency-funded debit cards, although the firms have not been entirely forthcoming about the reason for dissolving these relationships.

Nevertheless, most banks have not extended these bans to debit cards, which you can continue to use to buy bitcoin through BlockExplorer’s secure payment system.

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ban bitcoin

Three more credit card issuers have announced that they will automatically decline transactions associated with purchases of bitcoin and other cryptocurrencies, adding their names to a growing list of legacy financial institutions who have adopted hostile policies toward cryptocurrency in the wake of the recent market decline.

Three More Credit Card Issuers Ban Bitcoin, Cryptocurrency Purchases

Effective immediately, customers will no longer be able to use JPMorgan Chase, Bank of America, or Citigroup credit cards to finance their cryptocurrency investments, according to a report from Bloomberg.

The move deals another serious blow to the already-battered cryptocurrency markets, as JPMorgan and Bank of America are the two largest US banks, while Citigroup ranks fourth on the list.

A recent survey from LendEDU found that 18 percent of cryptocurrency investors financed their purchases with a credit card. While some likely did so out of convenience or to accrue rewards points, the survey also found that more than one-fifth carried the balance, perhaps indicating that they were gambling that they would be able to use profits from a price increase to pay back their debts.

This, a JPMorgan spokesperson said, presents the card issuers with too much credit risk, as these customers are more likely to default on their payments if the market heads south, as it has in recent weeks.

This updated policy brings the three card issuers in line with credit card processing giants Capital One and Discover, who had already banned customers from using credit cards to purchase cryptocurrency.

Meanwhile, Zerohedge reports that Coinbase has begun sending customers notices indicating that credit card processors who still allow cryptocurrency purchases have begun charging additional “cash advance” fees for transactions made at Coinbase and other similar brokerage platforms.

Fintech Startups Embrace Cryptocurrency

Notably, while credit card issuers move to ban bitcoin, upstart fintech firms are racing to provide investors with more convenient and user-friendly ways to buy and sell cryptocurrency.

Digital payments processor Square recently provided US customers in 46 states with the ability to buy, sell, and hodl bitcoin from directly within its popular Cash App, which ranks as one of the most widely-used financial apps in both the Google Play and App Stores.

Mobile brokerage platform Robinhood, meanwhile, is gearing up to launch a full-scale cryptocurrency trading platform this month, and more than one million people have already pre-registered for the service.

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top 25 cryptocurrency exchanges

Cryptocurrency exchanges have become an important onramp and offramp to the cryptocurrency world. From the infamous and now shuttered Mt. Gox to current industry leaders in volume such as Poloniex and Bittrex, cryptocurrency exchanges and altcoin exchanges are seeing increased use around the world. Every day, billions of dollars are traded back and forth over the top cryptocurrencies on these cryptocurrency exchanges. Traders, buyers, and sellers must trust these exchanges with their money, but are the exchanges really trustworthy? Unfortunately, not all cryptocurrency services are as secure or safe as you might think. In fact, some crypto exchanges have been known to be scams or vulnerable to hacking. This could lead to the loss of any cryptocurrency stored on there.

We take a look at the fees, history, and usability of the top cryptocurrency exchanges available in 2017. Whether you’re seeking to buy Bitcoin or other cryptocurrencies as an investment, to utilize margin trading, or anything else – Use this list of cryptocurrency exchanges to help choose an exchange for you.

1. Poloniex

poloniex cryptoName: Poloniex
Review
URL: https://www.poloniex.com
Total trading pairs: 101
Founded: 2013
Deposit fees: no
Withdrawal fees: no
Trading fees: 0.10% – 0.25%
Margin trading: yes
USA accepted: yes
Verification levels and withdrawal limits:

Verification Level

Requirements

Limits

Level 1 Email, First & Last Name, Country $2,000, USD Margin Trading Enabled
Level 2 Complete Address, Phone Number, Date of Birth 7,000 USD
Level 3 SSN, Scan of Photo ID, Selfie holding your ID $25,000 USD
Enhanced Verification Contact Support Greater than $25,000 USD

2. Bittrex

Namebittrex crypto: Bittrex
Review
URL: https://www.bittrex.com/
Total trading pairs: 271
Founded: 2014
Deposit fees: no
Withdrawal fees: yes
Trading fees: 0.25%
Margin trading: no
USA accepted: yes
Verification levels and withdrawal limits:

Verification Level

Limits

Basic 0.4 BTC
Enhanced 100 BTC

3. GDAX

gdax cryptoName: GDAX
Review
URL: https://www.gdax.com/
Total trading pairs: 9
Founded: 2016
Deposit fees: no
Withdrawal fees: no
Trading fees: 0.00% – 0.25%
Margin trading: yes
USA accepted: yes
Review: BlockExplorer’s GDAX Review
Verification levels and withdrawal limits:

Verification Level

Limits

Verified Algorithmic

4. Kraken

kraken crpytoName: Kraken
Review
URL: https://www.kraken.com/
Total trading pairs: 59
Founded: 2011
Deposit fees: no
Withdrawal fees: no
Trading fees: 0.00% – 0.36%
Margin trading: yes
USA accepted: yes
Verification levels and withdrawal limits:

Verification Level

Limits

 Individual w/o proof of source $25k USD daily
 Individual w/ proof of source $100k USD daily
 Corporate w/o proof of source $100k USD daily
 Corporate w/ proof of source $1m USD daily

5. Bitfinex

bitfinex cryptoName: Bitfinex
Review
URL: https://www.bitfinex.com
Total trading pairs: 56
Founded: 2012
Deposit fees: no
Withdrawal fees: no
Trading fees: 0.04% – 0.20%
Margin trading: yes
USA accepted: no
Verification levels and withdrawal limits:

Verification Level

Limits

Individual No limit
Corporate No limit

6. Bitstamp

bitstamp cryptoName: Bitstamp
Review
URL: https://www.bitstamp.net
Total trading pairs: 11
Founded: 2011
Deposit fees: no
Withdrawal fees: no
Trading fees: 0.05% – 0.25%
Margin trading: no
USA accepted: yes
Verification levels and withdrawal limits:

Verification Level

Limits

Verified No limit

7. WEX

wex cryptoName: Wex (formerly BTC-e)
Review
URL: https://wex.nz
Total trading pairs: 26
Founded: 2017
Deposit fees: no
Withdrawal fees: no
Trading fees: 0.20%
Margin trading: no
USA accepted: no
Verification levels and withdrawal limits:

Verification Level

Limits

Regular 10k USD
VIP 100k USD

8. Coinone

coinone cryptoName: Coinone
Review
URL: https://coinone.co.kr
Total trading pairs: 7
Founded: 2015
Deposit fees: no
Withdrawal fees: yes
Trading fees: 0.00% – 0.15%
Margin trading: yes
USA accepted: no
Verification levels and withdrawal limits:

Verification Level

Requirements

Limits

Level 1 Email, Country 1,000 KRW
Level 2 Mobile phone authentication 500,000 KRW
Level 3 OTP registration 1,000,000 KRW
Level 4 Operation team review Greater than 100,000,000 KRW

9. Quione

quoine cryptoName: Quoine
Review
URL: https://www.quoine.com
Total trading pairs: 23
Founded: 2014
Deposit fees: no
Withdrawal fees: no
Trading fees: 0.00% – 0.25%
Margin trading: yes
USA accepted: no
Verification levels and withdrawal limits:

Verification Level

Limits

Indvidual Daily: 30-50k USD; Monthly: 300-500k USD
Corporate Daily: 100-150k USD; Monthly: 1-1.5m USD

10. bithumb

bithumb cryptoName: bithumb
Review
URL: https://www.bithumb.com
Total trading pairs: 23
Founded: 2013
Deposit fees: no
Withdrawal fees: no
Trading fees: 0.00% – 0.15%
Margin trading: yes
USA accepted: no
Verification levels and withdrawal limits:

Verification Level

Limits

Basic 3 BTC
Enhanced 100 BTC

11. HitBTC

hitbtc cryptoName: HitBTC
Review
URL: https://www.hitbtc.com
Total trading pairs: 327
Founded: 2013
Deposit fees: yes
Withdrawal fees: yes
Trading fees: 0.10% – 0.20%
Margin trading: no
USA accepted: yes
Verification levels and withdrawal limits:

Verification Level

Limits

Verified No limit

12. Gemini

gemini cryptoName: Gemini
Review
URL: https://www.gemini.com
Total trading pairs: 3
Founded: 2014
Deposit fees: no
Withdrawal fees: no
Trading fees: 0.00% – 0.25%
Margin trading: no
USA accepted: yes
Verification levels and deposit/withdrawal limits:

Verification Level

Limits

Individual ACH Daily Deposit/Withdrawal: $500/$10,000; ACH Monthly Deposit/Withdrawal: $15,000/$100,000; Cryptocurrency: No Limit
Institutional ACH Daily Deposit/Withdrawal: $10,000/$10,000; ACH Monthly Deposit/Withdrawal: $300,000/$100,000; Cryptocurrency: No Limit

13. Korbit

korbit cryptoName: Korbit
Review
URL: https://www.korbit.co.kr
Total trading pairs: 5
Founded: 2013
Deposit fees: no
Withdrawal fees: yes
Trading fees: 0.00% – 0.20%
Margin trading: no
USA accepted: yes
Verification levels and withdrawal limits:

Verification Level

Requirements

Limits

Level 1 Phone number KRW: 0; Cryptocurrency: 5,000,000 KRW
Level 2 SMS verification KRW: 0; Cryptocurrency: 5,000,000 KRW
Level 3 Address and Bank account registration KRW: 30,000,000 KRW; Cryptocurrency: 5,000,000 KRW
Level 4 Approval process 300,000,000 KRW
Level 5 Approval Process 500,000,000 KRW

14. bitFlyer

bitflyer cryptoName: bitFlyer
Review
URL: https://www.bitflyer.jp
Total trading pairs: 3
Founded: 2014
Deposit fees: no
Withdrawal fees: yes
Trading fees: 0.11% – 0.25%
Margin trading: no
USA accepted: yes
Verification levels and withdrawal limits:

Verification Level

Requirements

Limits

Level 1 Email, First & Last Name, Cellphone verification 2,000 USD
Level 2 Bank account and photo ID verification 50,000 USD

15. Binance

binance cryptoName: Binance
Review
URL: https://www.binance.com
Total trading pairs: 3
Founded: 2017
Deposit fees: no
Withdrawal fees: yes
Trading fees: 0.1%
Margin trading: no
USA accepted: yes
Verification levels and deposit/withdrawal limits:

Verification Level

Limits

Verified 2 BTC
Institutional 50 BTC

16. Vaultoro

vaultoro cryptoName: Vaultoro
Review
URL: https://www.vaultoro.com
Total trading pairs: 1 (and it doesn’t involve USD)
Founded: 2014
Deposit fees: no
Withdrawal fees: no
Trading fees: 0.20% – 0.50%
Margin trading: no
USA accepted: yes
Verification levels and withdrawal limits:

Verification Level

Limits

Verified No limit

17. LakeBTC

lakebtc cryptoName: LakeBTC
Review
URL: https://www.lakebtc.com
Total trading pairs: 8
Founded: 2013
Deposit fees: no
Withdrawal fees: no
Trading fees: 0.00% – 0.20%
Margin trading: no
USA accepted: yes
Verification levels and withdrawal limits:

Verification Level

Limits

Normal No limit

18. BitMarket

bitmarket cryptoName: BitMarket
Review
URL: https://www.bitmarket.net
Total trading pairs: 5
Founded: 2014
Deposit fees: no
Withdrawal fees: no
Trading fees: 0.00% – 0.45%
Margin trading: no
USA accepted: yes
Verification levels and withdrawal limits:

Verification Level

Limits

Unverified Yearly: 15,000 PLR/EUR
Verified No limit

19. CEX.io

cex cryptoName: CEX
Review
URL: https://www.cex.io
Total trading pairs: 15
Founded: 2013
Deposit fees: no
Withdrawal fees: no
Trading fees: 0.00% – 0.20%
Margin trading: no
USA accepted: yes
Verification levels and withdrawal limits:

Verification Level

Limits

Basic Daily: 500 USD; Monthly: 2,000 USD
Verified Daily: 50,000 USD; Monthly: 300,000 USD
Verified Plus Unlimited
Corporate Unlimited

20. QuadrigaCX

quadrigacx cryptoName: QuaudrigaCX
Review
URL: https://www.quadrigacx.com
Total trading pairs: 10
Founded: 2013
Deposit fees: no
Withdrawal fees: no
Trading fees: 0.20% – 0.50%
Margin trading: no
USA accepted: no
Verification levels and withdrawal limits:

Verification Level

Limits

Unverified Voucher only
Verified Bank wire: 500,000 USD; Cryptocurrency: 250,000 USD

21. Coinfloor

coinfloor cryptoName: Coinfloor
Review
URL: https://www.coinfloor.co.uk
Total trading pairs: 8
Founded: 2013
Deposit fee: yes (not on BTC)
Withdrawal fees: yes
Trading fees: Yes
Margin trading: no
USA accepted: no
Verification levels and withdrawal limits:

Verification Level

Limits

Verified No limit

22. itBit

itbit cryptoName: itBit
URL: https://www.itbit.com
Total trading pairs: 3
Founded: 2012
Deposit fees: no
Withdrawal fees: no
Trading fees: 0.00% – 0.20%
Margin trading: no
USA accepted: yes
Verification levels and withdrawal limits:

Verification Level

Limits

2FA Verified Daily: 30,000 USD; Monthly: 600,000 USD

23. Liqui

liqui cryptoName: Liqui
Review
URL: https://www.liqui.io
Total trading pairs: 235
Founded: 2016
Deposit fees: no
Withdrawal fees: no
Trading fees: 0.10% – 0.25%
Margin trading: no (coming soon)
USA accepted: yes
Verification levels and withdrawal limits:

Verification Level

Limits

Basic 50,000 USDT
Enhanced 500,000 USDT

24. ACX

acx cryptoName: ACX
URL: https://www.acx.io
Total trading pairs: 6
Founded: 2016
Deposit fees: no
Withdrawal fees: yes
Trading fees: 0.00%
Margin trading: no
USA accepted: yes
Verification levels and withdrawal limits:

Verification Level

Limits

25. Gatecoin

gatecoin cryptoName: Gatecoin
URL: https://www.gatecoin.com
Total trading pairs: 39
Founded: 2013
Deposit fees: no
Withdrawal fees: no
Trading fees: 0.02% – 0.35%
Margin trading: no
USA accepted: yes
Verification levels and withdrawal limits:

Verification Level

Limits

Tier 1 50,000 USD
Tier 2 Greater than 500,000 USD

 

square cash

Financial services giant Credit Suisse says that bitcoin integration “confers legitimacy” on bitcoin and will prove to be a financial boom for payment processing startup Square.

Credit Suisse Bullish on Square’s Bitcoin Play

Credit Suisse is not known for being bullish on bitcoin. Tidjane Thiam, the firm’s CEO, has called bitcoin the very definition of the bubble, and the company has not shown an interest in directly engaging with the crypto markets. That said, Credit Suisse is very optimistic about Square’s recent decision to test bitcoin sales within its popular Square Cash app.

As reported by CNBC, Credit Suisse analyst Paul Condra predicts that Square will attract or convert 10 million users into bitcoin buyers within two years, leading to an incremental $30 million in annual revenue. This estimate is based on the assumption that users will spend $200 per year — leading to $2 billion in annual volume — and Square will charge a modest 1.5 percent transaction fee. In response to the announcement, Condra raised his price target for Square shares to $37 from $31.

Square Cash ‘Confers Legitimacy’ on Bitcoin

In a note to Credit Suisse clients, Condra went a step further, forecasting that bitcoin integration will “confe[r] legitimacy” on bitcoin and lead other mainstream businesses to feel comfortable adding support for digital currencies.

From the note:

“While we are positive on Square’s strategy, to the extent it confers legitimacy on Bitcoin and prompts adoption by other providers (i.e., PayPal) the biggest beneficiary may be the crypto-asset industry,” Condra reportedly wrote.

The bitcoin price has risen considerably since Square began its bitcoin trial, in part based on speculation that Square will eventually enable merchants to accept bitcoin through its payment processing platform. On Monday, the bitcoin price rose to a new all-time high, peaking at $8,315 on bitcoin exchange Bitfinex.

Not lucky enough to be able to participate in Square Cash’s bitcoin trial? You can buy bitcoin using a credit card through Block Explorer using USD or EUR.