HSBC Nationwide The U.K. has enforced new measures on buying cryptocurrency. The Two banking institutions have been warned by the Financial Conduct Authority (FCA), British regulator that oversees the financial sector, to watch out for the risks of investing in cryptocurrencies.
Nationwide’s Crypto Purchasing Restrictions
British banking institution Nationwide Building Society It allegedly sent a letter to its customers Thursday Notifying them of the limitations on cryptocurrency buying According to the mail shared with a few people Twitter, Nationwide wrote, “We will be introducing limits on crypto currency purchases starting 28 February,” and added:
The Financial Conduct Authority The Financial Services Industry Regulation Agency (FCA) has identified certain risks when purchasing crypto currency.
“We will be introducing a cap on card payments made to crypto exchanges from a current account,” The email states that the daily ceiling for cards is now 100 British pounds for Flexone Current accounts, and up to 5,000 pounds for all other types of current accounts.
Nationwide The email, which was sent two days after the crypto restrictions took effect, is further described:
We Payments to crypto exchanges using a will not be permitted Nationwide credit card … Neither You can use the card with any older cards, but not with any other. Nationwide Credit card for buying crypto currency
HSBC Disallows Cryptocurrency Purchases with Its Credit Cards
Last Week, many people Twitter Also, they shared an email they claimed to be receiving from HSBC about crypto purchases. According HSBC sent the following email:
From 23 February 2023, we’ll no longer allow cryptocurrency purchases using our credit cards.
“This is due to the possible risk to you. The Financial Conduct Authority has cautioned against investing in crypto assets, as they’re considered very high risk, speculative investments,” The bank was emphasized. “If something goes wrong, it’s unlikely you’ll be protected by the Financial Ombudsman Service or the Financial Services Compensation Scheme.”
While HSBC is against cryptocurrency. Recently, it has come out in support of blockchain technology. It has declared a partnership with the software firm R3 to build a blockchain-based platform for use in international trade finance.
UK banks are taking a step back from allowing crypto purchases with their cards. In November last year, Santander UK and Starling Bank imposed similar restrictions on fund transfers to cryptocurrency exchanges. Recently, HSBC and Nationwide Building Society have added to this list.
The bank has also filed trademark applications to protect a variety of digital currency and metaverse products. It is unclear what their future plans are for the crypto space, but these steps are certainly a step back.
What are your thoughts on HSBC and Nationwide limiting crypto purchases? Leave us your comments below.
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