Merrill Lynch, a part of the Bank of America family, is reportedly preventing its clients, and its advisors, from taking part in any trade or investment activities concerning bitcoin. The imposed ban is thought to affect more than 17,000 financial advisors working for the organisation.

This does not mark the first time that Merrill Lynch has taken such measures. Just last month, the brokerage brand imposed a ban on bitcoin futures; a move which pre-empted the announcement by CBOE which stated that they would begin listing bitcoin futures contracts imminently. Restricting all bitcoin activity is understood to be an extension of these existing regulations.

While the exact reasoning for the decision remains unclear, it is said to concern the \'eligibility\' and \'suitability\' of bitcoin. The Wall Street Journal reports that similar restrictions are in place for bitcoin futures contracts across other major banks, including JPMorgan Chase, the Royal Bank of Canada, and Citigroup, although the extension of the ban is believed to be specific to Merrill Lynch at this time.

All bitcoin activity, including activity related to the Bitcoin Investment Trust, is affected. Clients holding bitcoin funds are being advised to maintain these funds in a brokerage account.