Largest Nordic Bank Get Approval From Court To Ban Employees Crypto Purchases
- The ban against Bitcoin investments for employees started in January last year.
- Bitcoin has been criticized by many traditional financial institutions in its lifetime, but few have banned it.
Bitcoin is a controversial topic in many areas of the world still, especially for banks. There are some banks that have restrictions on exactly what type of investment portfolio their employees are allowed to have. Nordea Bank, for example, imposed a ban in January 2018 that prevented their employees from buying and selling cryptocurrency. Now, according to reports to Bloomberg, the courts have decided to keep the ban in place.
The ban was widely publicized, impacting 31,000 employees, as the bank stated that there was a high risk associated with Bitcoin and crypto investments. The comments followed the massive crypto boom that had since cooled in the month prior. Most notably, this month brought Bitcoin its all-time high, nearly reaching $20,000. At the time, a representative from the bank stated, “The risks are seen as too high and the protection is insufficient for both the co-workers and the bank,” adding that Bitcoin made illicit transactions easier.
The Financial Services Union Denmark (FSU DK) filed a class-action lawsuit against Nordea, aiming to protect their employees in the financial industry. The ban even prevented employees from investing in Bitcoin during their own time. The union’s chairman, Kent Petersen, stated, “We filed suit because of the principle that everyone obviously has a private life and the right to act as a private individual.”
Bitcoin has long been criticized by the traditional banking world, and the head of JPMorgan Chase – Jamie Dimon – has publicly said that the cryptocurrency is a “fraud.” However, despite this stance on the industry and Bitcoin itself, the financial institution and Dimon launched the JPM Coin, a digital asset, though many cryptocurrency proponents have refused to acknowledge it as a true cryptocurrency.
In November this year, banks in Germany issued new regulations that made it possible for banks to sell and store cryptocurrencies. Hopefully, this new option will bring in more consumers to the industry and boost revenue.