Canadians Move To Decentralized Exchanges Amid Growing Fiat Inflow Bans
April 12, 2018 BY Garrett
Another Canadian bank bans customers from buying cryptocurrency
According to a Reddit post that has since been deleted, Canada’s Bank of Montreal (BMO) has announced that it will no longer be allowing its customers to purchase cryptocurrencies using their credit or debit cards. BMO is not the first Canadian bank to make this decision. Toronto Dominion made a similar choice last month and The Royal Bank of Canada, the second-largest bank in Canada, decided to limit the amount of money that can be spent buying cryptocurrency. (See the rumored BMO screencap here.)
But, this has not stopped Canadians from trading cryptocurrency. LocalBitcoins, a decentralized exchange, has recently observed a 6x increase in Canadian Dollar (CAD) volume in the last few weeks.
This example of mass inflow to a decentralized exchange is showing their potential significance in the future. If regulation continues to restrict fiat inflow, traders will find a way around it by using decentralized exchanges, as expressed here. These exchanges are crucial to the success of cryptocurrencies.