TD Bank Prevents Customers From Buying Bitcoin and Other Cryptocurrencies

Various banks around the world are not too happy about people buying Bitcoin. We have seen multiple banks close customer accounts because of this activity. This is not a positive development by any means. It now seems TD Bank is actually trying to block Bitcoin purchases as well, although the company is mainly performing routine checks by the looks of things.

TD Bank Doesn’t Like Bitcoin That Much

It is never good to see banks call up customers and ask them why they want to buy Bitcoin. In some cases, users will buy Bitcoin and suddenly see their preferred payment method declined. One user claims that his TD Bank credit card was “blocked” while buying Bitcoin and the bank had no intention of allowing him to do exactly that. This is yet another story in the growing list of banks meddling with people’s cryptocurrency affairs.

Interestingly enough, the user in question reports that his TD Bank checking account hasn’t yet been blocked. Said account is linked to Coinbase and can still be used for Bitcoin purchases without any issues. This may only be a matter of time, though, as it seems the bank is actively cracking down on cryptocurrency activity right now. This is not a positive development, but there is very little that can be done about it, unfortunately.

When the individual called the TD Bank card services hotline, the person responding to the call confirmed the institution does not support Bitcoin, nor does it “deal with the kind of business”. That’s a rather harsh stance against Bitcoin and cryptocurrencies, although it is nothing we haven’t seen before. In such instances, there is very little reason to argue with bank staff, as they will not undo their decisions just because you may have some valid arguments.

PNC Bank has recently started taking some identical measures. It also prevents users from buying Bitcoin through a bank account, which is anything but a smart business decision. This also highlights how people never control their money when it is stored in a bank account. Instead, they are at the mercy of financial institutions that will determine how one can spend the money they are holding on one’s behalf. It is evident this legacy system needs to be replaced sooner rather than later.

Despite banks’ attempts to prevent Bitcoin and cryptocurrencies from taking off right now, their efforts will all be in vain in the end. Blocking people’s payment cards and bank accounts due to Bitcoin activity is a last-ditch effort. With the growing popularity of peer-to-peer marketplaces, there is no real need for bank accounts or payment cards to buy or sell Bitcoin these days. A lot of people still rely on centralized platforms, though, which makes these decisions by banks all the more troublesome.

Thankfully, there are some ways to circumvent these issues related to payment cards. Buying a prepaid Visa, for example, will solve these problems. Using LocalBitcoins is also a valid option in this regard. Even relying on Bitcoin ATMs is better than using a bank card or account to purchase cryptocurrency. It is time cryptocurrency users cut their ties with banks to a bare minimum, as only one of the two financial models will exist in a few years from now.

  • Brian M

    I can see all major banks taking this step soon. Cryptocurrencies are the largest threat to banks since the dismantling of the Federal Reserve (which was put back into place of course). Why would banks allow customers to engage in a form of currency that has the potential to weaken their own position? Fortunately for them bitcoin and the like are only speculative at this point and offer very few advantages over traditional currency.. but if someone can take that technology and create a real world application that competes with all fiat currencies.. look out

    • Stephen Jones

      You forget about the wonders of competition. there will always be a competitor bank ready and willing to welcome new customers that are feed up with this type of behavior. this is a suicidal move by TD that will result in lost business. not to mention, many crypto companies are expanding their fiat banking capabilities. not servicing customers’ wants is never a good idea.

    • M Alvarado (GoToys)

      bitcoin is already a real world application, overstock and Microsoft allow purchases, and guess what? if banks don’t want you to use it, it’s because of competition. So… I agree look out indeed!

  • MP

    A Blockchain Company should come out and capitalize on this and make a Credit Card or Account for People who want to HOLD Cryptocurrency and Fiat currency at the same allowing them to spend and transact anywhere and anytime.

    • Mtnchippewa

      That does exist already, in fact. There are multiple offerings of exactly that: Shift card, Xapo, cryptopay card, bitpay card, spectrocard, etc.

      • MP

        Then no one should fear these stupid banks then.. Who have been pretending to handle our money for our best interest only to see our buying power as a consumer weaken, and investment advisors that steer you the wrong way and still get paid at the end of the day regardless if they lose you money.

  • Mtnchippewa

    I’ve used bitcoin for a few years, although I have some critiques of it that I think legitimately call it into question (such as abhorrent fees and astronomical electicity usage to process transactions, both of which will hinder its adoption as a currency rather than a speculation). But there’s a reason banks don’t like it: they can’t profit off controlling it.
    However, the enormous fees charged by localbitcoins doesn’t make it worth it, and paying a 20% markup to buy bitcoins that cost $5-6 per transaction in fees for confirmations that can still take 1-24 hours isn’t a compelling case for cutting ties with banks.

  • David Hicks

    Last spring, I sent fiat via Interac from TD Bank (in Canada) to a Canadian broker with no issues. Only glitch was paying for a Genesis Mining contract with TD VISA because it was flagged as a financial transfer and they wanted me to understand it would count as a cash advance (with the exorbitant interest rate that would trigger).

  • Stephen Jones

    Simple solution; if your bank engages in this type of behavior, simply close your account, take ALL of your money and deposit it in a competing bank across the street.

  • Tommy John

    This is a silly assumption that banks are trying to prevent the growth of an industry. It would be foolish for them to think they could do so. This is actually a means of fraud protection in a payments space that is new and highly prone to fraud. Once the banks understand how to effectively protect themselves against fraud they’ll open up transactions in this space. that is likely why you will see the activity blocked by smaller regional banks vs larger financial institutions. Best of luck with your next conspiracy theory!

  • R22

    haha yes this will eventually shut Banks Down……this is the way it should be. Why print money? this will happen sooner than they think. They should be smarter though…theres a way they can also cash in on this. and live in unison. After all. Its just a way of thinking.

  • R22

    TD is rejecting my purchases, even though it is difficult to accumilate one simple bitcoin in whole. they lied to me saying it was the trading house’s fault and finally found out it was them. They have no legal right in doing so. I can spend my money at a casino…my risk….they have no right. They know that they will all be replaced in a decade…and this is the way it should be. The banks have swallowed people whole, and the fact that they are illegally blocking customers from spending their money as they wish, or dare….is just going to anger the community into a frantic frenzy all the more. Time to move over banking crooks. Digital currency is coming……AND ITS COMING HARD.