TD Bank halts allowing customers to use credit cards to buy cryptocurrency

A TD Bank branch is seen in Halifax on Thursday, March 30, 2017. (THE CANADIAN PRESS/Andrew Vaughan)

Toronto-Dominion Bank is halting the use of its credit cards to buy cryptocurrency as it conducts a review of the "evolving market."

The recent decision follows moves by several U.S. banks to stop allowing credit card purchases of Bitcoin and other cryptocurrencies.

"At TD, we regularly evaluate our policies and security measures, in order to serve and protect our customers, as well as the bank," a TD spokesperson said in an emailed statement Friday.

The value of Bitcoin soared last year, trading for more than C$20,000 per Bitcoin. Since then, the value of the cryptocurrency has come off its all-time highs and trades for around C$13,000, but remains up significantly from where it was a year ago.

Royal Bank said Friday it does allow its credit and debit cards to be used for transactions involving cryptocurrency in limited circumstances. However, the lender also cautioned clients about the possibility of a sudden drop in the value of cryptocurrencies which "could expose them to substantially higher debt levels than they are able to repay."

"We do recognize that regulatory, risk and other external environmental factors relating to cryptocurrency continues to evolve," an RBC spokesperson said in an emailed statement. "As such, we continue to review our policies to consider how we can best support clients."

The Bank of Nova Scotia is also looking closely at its cryptocurrency transaction policy.

"We understand that regulatory and risk factors related to cryptocurrency continue to evolve and as a result, we are closely reviewing our policies with respect to cryptocurrency transactions," a Scotiabank spokesperson said in an emailed statement.

The Canadian Imperial Bank of Commerce and the Bank of Montreal did not immediately respond to requests for comment.