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Beware of Buying Crypto With Debit Cards Says Kenyan Bank

Beware of Buying Crypto With Debit Cards Says Kenyan Bank
  • NCBA Bank, Kenya, does not encourage its users to indulge in crypto trading.
  • The bank sent an email to its clients detailing possible risks in buying crypto with bank cards.
  • It openly discourages its clients from buying, holding, and trading on any crypto exchange.

Of late, certain Kenyan banks have sent alerts to their clients. These alerts are notifying users to vary of using their debit or credit cards when buying crypto on exchanges.

In particular, NCBA Bank, Kenya warns its clients to not buy, trade, or hold in any virtual currencies. This is in light of the Central Bank of Kenya’s circular No.14 of 2015. According to this, the country does not recognize virtual currencies like Bitcoin as legal tender.

Thus, the bank cannot support its clients with any sort of protection if the platforms that the clients are using to hold or trade their assets may fail. Besides this, the email also goes on to highlight other possible vulnerabilities their clients may face.

Firstly, the email points out that virtual currencies are hard to trace. Thus making it possible for client funds to be susceptible to criminal abuse. Secondly, the email mentions that virtual assets play on exchange platforms. However, it marks that these platforms are not accurately regulated globally.  

Hence, clients face the possibility of losing all their money. Additionally, they will not have the proper legal or professional resources to fight this loss if incurred. Thirdly, none of the virtual currencies are backed by actual assets. So, making it even easier for clients to face losses.

Finally, NCBA concluded the email by stating very clearly that the bank does not approve of any crypto transactions made using its cards. They also mention their disapproval of their clients transacting with any institution that trades in virtual currencies.

However, crypto trading still seems to be on a high in Kenya. Just like other countries like India and China, governments are still skeptical about crypto. In contrast, their citizens have fully embraced the possibilities it brings. Other countries such as El Salvador and the USA have begun to fully embrace crypto as well. Some are working to make Bitcoin a legal tender. Meanwhile, other countries are exploring their own national digital coins and have begun preparing new laws.

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