HSBC and Nationwide have implemented new restrictions on cryptocurrency purchases in Britain following a warning from the Financial Conduct Authority (FCA), the regulator that oversees the financial sector.
Nationwide’s Cryptocurrency Limitations
British financial institution Nationwide Building Society sent an email to customers on Thursday informing them about the new restrictions on cryptocurrency purchases. According to reports that circulated on Twitter, Nationwide wrote, “We will be introducing restrictions on purchasing crypto currency from 28 February,” further explaining:
The Financial Conduct Authority has identified certain risks when purchasing crypto currency.
“We will be introducing limits on card payments made to crypto exchanges from a current account,” the email stated, adding that the daily limit for a Flexone Account is 100 British pounds and 5,000 Pounds for other current accounts.
The email, which was sent two days after the crypto restrictions took effect, went on to say:
We will not accept payments to crypto exchanges that use a Nationwide credit card, nor can you use any older cards from us for purchasing crypto currency.
HSBC Disallows Crypto Purchases Using Its Credit Cards
Several Twitter users claimed to have received an email from HSBC this week regarding cryptocurrency purchases. According to the email, HSBC wrote the following:
From 23 February 2023, we’ll no longer allow cryptocurrency purchases using our credit cards.
“This is because of the possible risk to you. The Financial Conduct Authority has warned against investing in crypto assets, as they’re considered very high risk, speculative investments,” the bank warned. “If something goes wrong, it’s unlikely you’ll be protected by the Financial Ombudsman Service or the Financial Services Compensation Scheme.”
Despite HSBC’s stance on cryptocurrency, the bank recently filed trademark applications to protect a variety of digital currency and metaverse-related products. It has also joined the metaverse.
An increasing number of U.K. banks are placing restrictions on crypto purchases. Last November, Santander UK and Starling Bank imposed similar restrictions on funds transferred to crypto exchanges.
What are your thoughts on Nationwide and HSBC limiting crypto purchases? Let us know what you think in the comments below.
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