Credit card holders from four U.S. banks have been barred from purchasing cryptocurrencies using credit cards at Coinbase, the exchange has confirmed.
According to the firm’s latest tweet, credit card users from JPMorgan Chase, Bank of America, Citi and Capital One are all currently prohibited from purchasing cryptocurrencies at the platform.
However, other payment channels such as debit cards and bank transfer are still available, and are being encouraged by Coinbase as alternatives for affected customers.
The notice came as a confirmation to a recent report that Chase, Bank of America and Citi had launched the ban starting in early February over fears that credit card users may run up debt if the prices of cryptocurrencies drop. It further indicates that the restriction also extends to Capital One, another major credit card issuer in the U.S.
This news also arrives amid a major price correction across the crypto markets in the last few weeks…