Alior opens up to cryptocurrencies? Not quite, but there is a glimmer of hope

Alior Bank brokerage opens up to cryptocurrencies? Partially. The bank offers CFD trading on bitcoin and ether exchange rate differences.

Alior and cryptocurrencies

On the Alior Bank website you will find information that this institution offers CFD contracts on two cryptocurrencies: bitcoin and ether.

So is Alior opening up to cryptocurrencies? Yes and no. You can’t buy bitcoins and ether through this bank. You can only invest in a financial instrument based on them. Contracts allow you to earn on changes in the exchange rate, using financial leverage. However, I want to emphasize this: with Alior you will not become the owner of “physical” bitcoin and ether!

A contract for difference (CFD) is a contract between a contract provider and an investor. In this contract, the two parties bet that the seller will pay the difference between the current value of an asset and its value on the day the contract is set. In simple terms, it is a type of bet on the valuation of the contract on the day the position is closed.

If you are interested in Alior’s offer, I will hurry with the technical details. The minimum order value is 0.01 bitcoin. In the case of ether – 0.05 ETH. In the case of both cryptocurrencies, you must have a deposit of 50%. The bank’s brokerage commission for the transaction is 0.15%.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs.

Consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money

– the bank itself warns.

KNF and cryptocurrencies

Alior’s decision is surprising. After all, the Polish Financial Supervision Authority (KNF) has been pursuing a policy for years that does not facilitate crypto business in Poland. Banks – probably under pressure from the authorities – closed accounts of users who traded cryptocurrencies or companies from this market. The Polish Bitcoin Association dealt with the case a few years ago. The case even came close to the Office of Competition and Consumer Protection (UOKiK) and the Consumer Ombudsman (RPO). However, both institutions did not help the market.

Alior, however, decided to open up slightly to cryptocurrencies. The case is all the more surprising because we are talking about a bank that is indirectly controlled by the State Treasury. It is therefore possible that the KNF will change its approach to digital assets in some time.