In an attempt to appear to protect customers, Discover protects itself from competition...

Traders will not be permitted to use their Discover credit card to purchase cryptocurrency, in a move touted by Discover CEO David Nelms as a protective and precautionary measure. Nelms claims that, due to strict anti-money-laundering and KYC laws, millions of dollars would need to be spent in compliance procedures.

Nelms also made his opinion clear regarding Bitcoin investors, identifying them as "crooks that are trying to get money out of China or wherever" (https://www.ccn.com). This demonstrates either ignorance or deception on Nelms' part, as Bitcoin is easily traceable and is not used for criminal purposes by and large, especially when other anonymous cryptocurrencies, along with fiat cash, would be far more effective for nefarious activities.

So, in effect, Nelms is protecting its customers from the competition. This would be akin to your cable TV and internet provider preventing you from accessing Netflix to "protect" you from another product (who knows, with the repeal of net neutrality, this is conceivable in the future). Cryptocurrency is a means to buy and sell goods that circumvents traditional credit cards and their excessive fees. This is cutting into Discover's potential profits.

It is likely that only a small percentage of Discover customers use their credit cards to purchase cryptocurrency. However, it is also likely that those customers may choose a more crypto-friendly credit card provider instead. As time passes, it may be in the best interest of these companies to allow free access to the cryptocurrency market as customers may be drawn to the companies who support this freedom. Traders will likely continue to use banks and credit cards as the on and off ramp for buying and selling cryptocurrency for years to come.

Discover Card users, it may be time to look for a new card provider.

source:
https://www.ccn.com

image source:
https://www.amazon.com/Unknown-Discover%C2%AE-More-Card/dp/B007SP148M