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Denmark's Danske Bank Not To Support Crypto Investments

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Denmark's Danske Bank announced that it does not wish to "support the investment environment surrounding cryptocurrencies."

It plans to phase out the possibility of its customers purchasing financial instruments that are directly related to cryptocurrency prices that are highly volatile, Danske said on its website.

The Nordic expressed its concern saying, "At the current stage, cryptocurrencies do not offer the sufficient level of transparency in order for us to live up to our obligations within anti money laundering regulation."

"However, we monitor the market closely, and if the cryptocurrency market becomes more transparent and mature, we might reconsider this position."

The bank will allow customers to use its credit card to purchase cryptocurrencies as long as they comply with current anti-money laundering procedures and regulation .

Cryptocurrencies are seen to be highly volatile, and the price formation is not transparent about what is driving the price and how the market is developing.

Further, the lack of transparency and regulatory control raise concerns over excessive speculation, money laundering and tax evasion.

Banks tend to be suspicious about money laundering as companies have grown so fast during the last year amid the cryptocurrency boom. The issue of anonymity of cryptocurrency funds is against the European Union's (EU) anti-money laundering regulations, which have been recently amended to include digital currencies.

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