Copenhagen-based Nordea Bank, currently the largest financial group available in the Nordic region, can now decide to stop its staff from cryptocurrency investments. According to a court ruling, the bank’s not-so-supportive stance on digital currencies can be enforced on all of its employees.
The ruling was a result of an initial class-action filing against the company by a union of employees in Denmark’s financial industry. The case against Nordea Bank was on the premise that the bank’s decision to do something like that was an infringement on the private life of Nordea staff, which supposedly should not concern the employer.
In a statement, the chairman of the union Kent Petersen described the bank’s move as unnecessary and a little too “far-reaching.”
“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.”
However, the official publication from the court which was published on Monday, allowed Nordea Bank to go ahead with its plan, also seemingly agreeing with the bank’s opinion. Last year, Nordea management had sent an internal memo to its employees, discouraging them from engaging in cryptocurrency investments because it was ‘too risky’.
“The risks are seen as too high and the protection is insufficient for both the co-workers and the bank.”
The bank also believes that cryptocurrency investments should be shunned not just because it could have adverse effects on the image and reputation of the bank and its customers, but also because digital currencies are consistently being connected to illegal activity such as payments to criminals and money laundering as well.
Employees are however allowed to still invest in other financial instruments that are directly linked to crypto. Also, Nordea Bank will still allow staff to hold any crypto they may have had before the ban officially took effect.
Nordea Bank a few months ago, was the subject of a money-laundering inquiry that saw authorities conducting a physical search of the bank’s local headquarters.