BMO and Cryptocurrency: What Canadian Investors Need to Know in 2024

BMO’s Stance on Cryptocurrency: A Cautious Banking Approach

As one of Canada’s Big Five banks, BMO (Bank of Montreal) maintains a measured position on cryptocurrency. Unlike some fintech-focused institutions, BMO doesn’t offer direct cryptocurrency trading or digital asset accounts. This conservative stance stems from regulatory uncertainties and volatility concerns. However, BMO actively monitors blockchain developments, acknowledging its potential to transform financial services like cross-border payments and settlement systems.

How BMO Engages with Blockchain Technology

While avoiding direct crypto trading, BMO explores blockchain’s infrastructure:

• Trade Finance Innovation: Partnered with other banks to test blockchain for automating international trade documentation
• Payment Systems Research: Exploring distributed ledger technology for faster interbank settlements
• Digital Identity Solutions: Investigating blockchain-based verification systems to combat fraud

These initiatives highlight BMO’s focus on underlying technology rather than speculative crypto assets.

Alternatives for Crypto Investors Using BMO Accounts

Canadians can access cryptocurrencies through BMO indirectly:

1. Fund Transfers to Exchanges: Link your BMO account to regulated platforms like Wealthsimple Crypto or Bitbuy
2. Cryptocurrency ETFs: Purchase Bitcoin or Ethereum ETFs (e.g., BTCC.B, ETHH) through BMO InvestorLine
3. Blockchain Stock Investments: Buy shares of crypto-adjacent companies (e.g., Coinbase, Marathon Digital) via BMO trading platforms

Important: BMO may block credit card crypto purchases due to volatility risks.

Security Considerations for Crypto Transactions

When moving funds between BMO and crypto exchanges:

• Enable two-factor authentication on all accounts
• Use dedicated bank accounts for crypto transfers to simplify tracking
• Verify exchange credentials through IIROC registration
• Monitor for phishing scams targeting “BMO crypto services” (BMO doesn’t offer these)

Frequently Asked Questions (FAQ)

Does BMO offer cryptocurrency trading?

No. BMO doesn’t provide direct cryptocurrency buying/selling services. Customers must use third-party exchanges.

Can I buy Bitcoin with my BMO credit card?

BMO typically blocks cryptocurrency purchases on credit cards. Debit transfers or bank wires to regulated exchanges are alternatives.

Is BMO developing its own cryptocurrency?

There’s no evidence BMO plans to launch a proprietary cryptocurrency. Their focus remains on enterprise blockchain applications.

Are crypto transactions via BMO accounts insured?

CDIC insurance covers CAD balances in BMO accounts but does not protect cryptocurrency assets held on exchanges or wallets.

How does BMO view cryptocurrency investments?

BMO advises caution due to volatility and regulatory uncertainty. Their investment arms recommend limited crypto exposure (<5% of portfolios) for qualified investors.

The Future of Crypto at BMO

As regulatory frameworks evolve (like Canada’s Crypto Asset Reporting Framework), BMO may expand services. Potential developments include:

• Custody solutions for institutional crypto assets
• Integration of blockchain into wealth management platforms
• Stablecoin partnerships for corporate payments

For now, BMO remains a gateway—not a provider—of cryptocurrency access, balancing innovation with prudent banking practices.