As per the guidelines, crypto wallet apps and exchanges are acceptable, but no apps may mine crypto with an exception of cloud-based mining. It also requires trading apps to be provided by established banks, securities firms, and futures commission merchants.
Meanwhile, Wells Fargo is treading the steps already taken by Bank of America (BAC), JPMorgan Chase (JPM), and Citigroup (C), banning the purchase of cryptocurrency through credit cards. According to a Bloomberg report, Wells Fargo will reassess the issue as needed after monitoring the crypto market.
Banks fear that customers buying bitcoins or ethereum on credit might fall into a debt trap due to the volatility of the market. The market could lure customers into buying more through credit cards than they can actually afford.
A survey conducted by an affiliate of LendEDU showed that 21% of university students had used financial aid to invest in cryptocurrencies. Another survey found that one-fifth of the 18% investors, who bought crypto using credit cards, were unable to pay the balances immediately.