Bitcoin and cryptocurrencies in general continue to fail to convince Danske Bank, which reiterates its no to crypto trading despite growing customer demand. The largest Danish bank said today that it will not lift the ban on trading bitcoin and other cryptocurrencies on its platforms, stressing the “lack of transparency and regulation in cryptocurrency trading”And the concern about“ volatile and opaque prices ”.
It is also there that is worrying poor environmental sustainability of crypto. The carbon footprint of mining cryptocurrencies runs counter to Danske’s goal of doing sustainable banking.
“We recognize that there is a significant global market for cryptocurrencies and that many customers find cryptocurrencies interesting – reads the bank’s website – However, as a financial institution, Danske Bank for various reasons maintains a very cautious approach towards cryptocurrencies”.
As Bloomberg recalls, Danske is still under investigation for money laundering in the United States and Europe and is therefore particularly sensitive to the world of cryptocurrency trading given the risk of such assets being used for financial crimes. Danske therefore looks forward to seeing how developments in the new European Union legislation, the regulation of cryptocurrency markets (MiCA), progress.
Bitcoin under pressure again
Today, cryptocurrency sales prevail. Bitcoin reached over -4%, settling in the $ 37,600 area after it had climbed over the $ 40,000 wall in the first part of the week supported by the words of Elon Musk on the possibility of Tesla going back to accepting cryptocurrency transactions once miners use cleaner energy sources.
The latest Bank of America Global Fund Manager survey shows that around 81% of fund managers believe the Bitcoin is a bubble, even after the price collapse of 35% in May and despite new signs of institutional interest in cryptocurrency by hedge funds and banks including Wells Fargo. The survey showed that 72% of fund managers think the recent rise in inflation is transitory. Bitcoin is often seen as a hedge against inflation, and many cryptocurrency analysts attribute the cryptocurrency’s gains over the past year to concern over rising inflation.
Yet another SEC postponement for bitcoin ETF
Another postponement by the Securities and Exchange Commission (SEC) for the approval of the VanEck Bitcoin Trust, which would be the first bitcoin ETF on the US market, has also slowed the rise of bitcoin in recent days. The SEC will launch a new round of consultations to assess how much the ETF in question would be subject to market manipulation. The SEC, which for the second time extending the review period on the ETF proposed by VanEck, is concerned that it does not have adequate oversight on cryptocurrency exchanges and, therefore, cannot guarantee adequate investor protection.