Danish Nordea Bank has the right to prevent its employees from investing in Bitcoin (BTC) and other cryptocurrencies, said a court in the North European country. The bank will have the right to issue guidelines on ownership and cryptocurrency trading, even during the period of absence from work.
Bitcoin is risky and hurts Nordea's reputation
Cryptocurrency is risky and the risks justify the restriction, said a Copenhagen-based court. The lawsuit started in the Danish union for employees of the financial industry, according to a well-known online financial magazine. The rationale was that the ban on owning cryptocurrencies interfered with employees' personal lives.
"We filed a lawsuit because of the principle that everyone obviously has a private life and the right to act as a private individual," said union president Kent Petersen.
“It was important for us and our members to determine who the rights managers are. In this case, it was more far-reaching than we think is appropriate. "
The bank's position is that investing in Bitcoin could harm the employer's reputation. Therefore, owning Bitcoin is a label that Nordea Bank employees cannot afford. The bank has "warned" its workers that: the Bitcoin market is unregulated and likely related to criminal activity.
Nordea offers digital asset derivatives and a blockchain payment system
However, quite paradoxically, Nordea Bank itself has offered financial derivative instruments based on cryptocurrencies. But those were reserved only for special customers. Employees can, if they wish, invest in such products, but do not own real coins. Nordea Bank itself has launched a blockchain-based payment platform, we.trade, which allows authorized cross-border remittances for small businesses.
Nordea Bank's ban dates back to January 2018, right on the tails of the largest bull market in the BTC. But this time, the bank has a justification based on a court ruling. After the ban, Bitcoin has gone through one of its longest worst markets and has experienced another downward rally of 400% in the first six months of 2019. The currency could have damaged employees' personal finance, but could also have led to significant gains.
At this point, it is unclear how the bank would control cryptocurrency ownership. Keeping an actual BTC could be as simple as writing or even memorizing a sentence.
But even more paradoxically, Nordea Bank has been targeted due to a money laundering scandal. The bank allegedly collaborated with Baltic bank partners, leading to the management of contaminated funds.
Despite the ban, Bitcoin remains much more transparent than accounting books. The balances and transactions are visible to anyone and in many cases it is possible to keep track of the origin of the coins.
What do you think of the ban on owning BTC imposed by Nordea Bank? Share what you think in the comments section below!
