Bitcoin is risky and hurts NORDEA's reputation
A court in Copenhagen decided that ryptocurrency is risky, and risks justify the restriction. The lawsuit sued the Danish financial industry union, Bloomberg reports. The rationale was that the ban on the ownership of crypto-coins interfered with the personal life of the employee.
The union’s chairman Kent Petersen said - "We filed suit because of the principle that everyone obviously has a private life and the right to act as a private individual."
"It was important for us and our members to establish what rights managers have. In this case, it was more far-reaching than what we find to be appropriate."
The position of the bank is that investing in bitcoins can damage the employer's reputation. Thus, possession of bitcoins is undoubted etiquette for employees of Nordea Bank. The bank warned its employees that the bitcoin market is unregulated and possibly related to criminal activity.
NORDEA OFFERS DIGITAL ASSET DERIVATIVES AND BLOCKCHAIN PAYMENT SYSTEM
Paradoxically, however, Nordea Bank itself has proposed crypto-based derivatives. But they were reserved only for special customers. Employees can, if they wish, invest in these products, but not have their own coins. Nordea Bank itself has launched a payment platform based on the we.trade blockchain, which allows cross-border money transfers for small enterprises.
Nordea's ban has been in effect since January 2018, right on the tail of BTC's largest bull market. But this time, the bank has a justification based on a court decision. After the ban, Bitcoin went through one of the longest bear markets and in the first six months of 2019 announced another 400% rally. A coin could damage the personal finances of employees, but it could also lead to significant growth.
At the moment, it is not known how the bank will check for crypto assets. Saving the actual BTC can be as simple as recording or even remembering the original phrase.
But even more paradoxically, Nordea Bank was hit by a cross-money laundering scandal. The bank allegedly worked with partners from the Baltic Bank, which led to the processing of damaged funds.
Despite the ban, the Bitcoin register remains much more transparent than bank registers. Balances and transactions are visible to everyone, and in many cases the origin of the coins can be traced.