Although many folks refer to Bitcoin as anonymous money, it has a transparent blockchain, which you can easily inspect. This means that people around the globe have flexible financial freedom. This is an organized financial system.
The good thing about Bitcoin is that it’s not controlled or owned by any government, company, or individual. Its protocol has various laws on how to conduct financial transactions. This includes how many Bitcoins should exist and how individuals may transfer them between each other.
Is it a case of distrust or an act of authoritarianism? It is challenging to decipher why the Nordea Bank banned 31,500 of its employees from trading in cryptocurrency and Bitcoin. However, the bank allowed workers to keep their existing crypto holdings, although it encouraged them to trade by selling them.
If the bank banned Bitcoin out of concern, the question to ask is, is Bitcoin safe? This digital currency is safe and encrypted. Bitcoin build on a secure system known as the blockchain. This system uses several volunteers who work harmoniously and encrypt all transactions. By doing this, they ensure that all personal information remains private.
What is the Motive behind the Nordea Bank Ban on Bitcoin?
Some people wonder why the bank banned its employees from trading in Bitcoin. However, there are various reasons why they had to implement this ban:
One of the reasons why the Bitcoin prohibition was enforced is that the Bitcoin market is not transparent neither is it regulated. According to the bank, it is hard to know where the funds come from. They further argue that the lack of regulation poses the risk of losing all the money their employees invest, or the workers might get pulled into unethical or illegal transactions.
According to the crypto community, regulation is not an easy thing to do, especially when you look at the principles for creating Bitcoin. The idea was to develop a financial system that does not need any third parties, or controlled by others, such as central banks and governments. This is why Bitcoin stakeholders demanded that the platform shall always remain free from third-party interference.
Bitcoin trading is legal in Nordic countries, where the Nordea bank has many branches. All foreign and local casinos in Denmark can conduct business and receive licenses as long as they adhere to the provisions.
The Bank’s Authority
The Bitcoin-trading prohibition issued on Nordea’s Bank employees is nothing new. Some crypto exchanges also did the same by prohibiting generic Bitcoin exchanges among its workers. Specialized employees in large and established financial institutions may sometimes not do certain things with their assets.
Most people don’t think that there are any legal issues with Bitcoin-trading prohibition. This is because banks have the authority to regulate how their employees conduct their security trading activities. This helps the banks confirm that their workers are not engaging in any unscrupulous activities and deals. However, what concerns most individuals is that the Nordea Bank has banned its workers from accessing an asset class.
This ban is unique because it is rare. A private bank like the Nordea Bank bans all its employees from Cryptocurrency trading. This is the first time such an incident has happened. It is difficult to understand what the bank is shielding its employees from. This is because Bitcoin trading is similar to conventional asset classes when it comes to adjusting risk returns.
The bank claims that investing in Cryptocurrency was banned because the assets are unregulated, and there are no laws to protect investors. Bitcoin trading exposes the investor to liquidity, volatility, and financial risks. The bank fears that Bitcoin can be used to conduct criminal acts as well as tax evasion. Sometimes, the bank can be held liable for the actions of its employees.
What About Trading in Bitcoin Outside the Job?
What would happen if the employees of the Nordea Bank traded in Bitcoin outside the job? This activity does not affect the job; however, private activities could affect the workplace negatively. It is the impact on the workplace that concerns the bank. For instance, if a worker is charged with fraud in his private activities, this paints a bad picture and might ruin the bank’s reputation.
According to the bank, its employees might enter illegal or unethical activities without knowing if they can trade in Bitcoin in their free time. However, some individuals argue that since Bitcoin is a pseudonymous crypto asset, criminals would be foolish to use it for their activities. This is because it is easy to track a criminal.
Is this Hostility to Crypto?
The Nordea Bank might seem like it’s taking this ban too far; however, it is protecting itself. In 2014, Nordea Group shifted its strategic concerns to the Nordic states from where it was previously in the Baltic states.
This was done because the bank was concerned that its international customers were using some of its branches for dirty money laundering. The bank was under investigation for 3 years because of handling illegal funds connected to Russian criminals. Authorities then accused it of suspicious money flows. This does not mean that every worker was involved in any illegal activities. Although the bank can have the authority to prohibit trading in Bitcoin, it should not ban all its employees.
While owning and trading in crypto in Denmark is not illegal, the bank banned all its employees from trading in Bitcoin because of money laundering suspicions. But, the Danish court allowed the bank to prohibit its workers from trading and owning cryptocurrency, an appeal could help employees who wish to trade.
What do you think about the Nordea Bitcoin ban on its employees? Please share your thoughts with us.
Author’s Bio: Thomas Glare is a freelance blogger who focuses on the digital world and tries to educate his readers about the benefits of cryptocurrency trading. He enlightens his readers about the future of blockchain technology and its applications. His articles are straightforward for the layman and the non-technical individual to understand.
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