HSBC and Nationwide have imposed new restrictions on cryptocurrency purchases within the U.Ok. The 2 monetary establishments cited a warning from the Monetary Conduct Authority (FCA), the British regulator overseeing the monetary companies business, concerning the dangers concerned in buying cryptocurrencies.
Nationwide’s Crypto Buy Restrictions
British monetary establishment Nationwide Constructing Society allegedly despatched an e mail to its prospects on Thursday to tell them of restrictions on cryptocurrency purchases. In response to the e-mail shared by a number of folks on Twitter, Nationwide wrote, “We will probably be introducing restrictions on buying crypto foreign money from 28 February,” elaborating:
The Monetary Conduct Authority (FCA), who regulate the monetary companies business, has highlighted sure dangers related to buying crypto foreign money.
“We will probably be introducing limits on card funds made to crypto exchanges from a present account,” the e-mail continues, including that the brand new every day card restrict is 100 British kilos for Flexone accounts and 5,000 kilos for different present account varieties.
Nationwide additional detailed within the e mail which it allegedly despatched two days after the crypto restrictions went into impact:
We won’t enable funds to crypto exchanges utilizing a Nationwide bank card … Neither you nor any extra card older will be capable of use a Nationwide bank card to buy crypto foreign money.
HSBC Disallows Crypto Purchases Utilizing Its Credit score Playing cards
Final week, a number of folks on Twitter additionally shared an e mail they claimed to have acquired from the banking large HSBC concerning crypto purchases. In response to the e-mail, HSBC wrote:
From 23 February 2023, we’ll now not enable cryptocurrency purchases utilizing our bank cards.
“That is due to the doable threat to you. The Monetary Conduct Authority has warned in opposition to investing in crypto property, as they’re thought of very excessive threat, speculative investments,” the financial institution emphasised. “If one thing goes mistaken, it’s unlikely you’ll be protected by the Monetary Ombudsman Service or the Monetary Providers Compensation Scheme.”
Whereas HSBC has taken an anti-crypto stance in relation to permitting prospects to buy cryptocurrencies, the financial institution lately filed trademark purposes for a variety of digital foreign money and metaverse merchandise. It has additionally joined the metaverse.
A rising variety of banks within the U.Ok. are inserting restrictions on crypto purchases. In November final yr, Santander UK and Starling Financial institution imposed related restrictions on fund transfers to crypto exchanges.
What do you consider Nationwide and HSBC proscribing crypto purchases? Tell us within the feedback part beneath.
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