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Danske Bank's position on cryptocurrencies

In recent years, cryptocurrencies such as bitcoin and ethereum have received significant attention from investors and media, and Danske Bank regularly receives questions on this topic from customers, journalists and other stakeholders. Below, we have outlined our position on trading and investing in cryptocurrencies.

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Cryptocurrencies represent a significant digital innovation in financial services and we recognise that there is a significant global market for crypto currencies and that many customers find cryptocurrencies interesting. At the same time, we see great potentials in the blockchain technology, which cryptocurrencies build upon. However, as a financial institution, Danske Bank for several reasons maintains a very cautious approach towards cryptocurrencies.

Reasons to maintain a very cautious approach

  • Trade in cryptocurrencies is not always sufficiently transparent, which may make it difficult for us as a financial institution to meet our obligations to fight financial crime and money laundering.

  • Trade in cryptocurrencies is only partially regulated by financial regulation and consumers therefore do not always have the consumer protection associated with regulated financial products.

  • Pricing of cryptocurrencies is opaque and highly fluctuating, and as an investor, you have limited insight into how the market develops and what drives the price.

  • Transactions with certain cryptocurrencies require very large amounts of computing power that are extremely energy intensive, and this is in not in line with Danske Bank's ambition to promote sustainable development together with our customers.

For these reasons, it is at present not possible to trade cryptocurrencies or financial instruments based on cryptocurrencies on Danske Bank's trading platforms, and we generally advise against investing in such assets. Thus, we cannot currently offer investment advice on cryptocurrencies or financial instruments based on cryptocurrencies.
However, we continuously monitor developments in the area of cryptocurrencies, and as the cryptocurrency market matures and is further regulated, we will review our position.

We thus favour the new EU legislation Regulation of Markets in Crypto Assets (MiCA), as it is expected to ensure better regulation of the market      

Credit card transactions and deposits related to crypto currencies
For customers that deposit funds that stem from investments in crypto currencies, we will treat them in the same way as deposits of funds from other types of investments. Accordingly, we may accept the deposit if it complies with applicable law and follows anti-money laundering procedures.

Furthermore, we do not block the use of a credit card issued by Danske Bank in connection with the trading of cryptocurrencies. As with all other credit card transactions, customers must follow applicable anti-money laundering procedures and comply with applicable laws.

This article was updated in January 2023. In the previous version, it appeared that the EU legislation Regulation of markets in Crypto Assets (Mica) was under preparation, which is no longer the case.