HSBC, Nationwide impose new restrictions on cryptocurrency purchases in the UK – Featured
HSBC and Nationwide have new restrictions on purchasing cryptocurrencies imposed in the UK. The two financial institutions cited a warning from the Financial Conduct Authority (FCA), the UK regulator of the financial services industry, regarding the risks of buying cryptocurrencies.
Nationwide Crypto Buying Restrictions
British financial institution Nationwide Building Society reportedly emailed its customers on Thursday to inform them of restrictions on buying cryptocurrencies. According to the email, shared on Twitter by several people, Nationwide wrote, “We will be introducing restrictions on cryptocurrency purchases starting February 28,” explaining:
The Financial Conduct Authority (FCA), which regulates the financial services industry, has highlighted certain risks associated with buying cryptocurrency.
“We will be introducing limits on card payments made from a current account on crypto exchanges,” the email continues, adding that the new daily card limit is £100 for Flexone accounts and £5,000 for other current account types.
Nationwide further detailed in the email, which was said to have been sent two days after the crypto restrictions went into effect:
We will not allow payments to crypto exchanges with a Nationwide credit card… Neither you nor any additional card that is older can use a Nationwide credit card to purchase cryptocurrency.
HSBC bans crypto purchases with its credit cards
Last week, several people on Twitter also shared an email they allegedly received from banking giant HSBC regarding crypto purchases. According to the email, HSBC wrote:
Starting February 23, 2023, we will no longer allow cryptocurrency purchases with our credit cards.
“That’s because of the potential risk to you. The Financial Conduct Authority has warned against investing in crypto assets as they are considered very risky, speculative assets,” the bank stressed. “If something goes wrong, you are unlikely to be protected by the Financial Ombudsman Service or the Financial Services Compensation Scheme.”
While HSBC takes an anti-crypto stance when it comes to allowing customers to buy cryptocurrencies, the bank has recently filed trademark applications for a wide range of digital currencies and Metaverse products. It has also joined the Metaverse.
A growing number of banks in the UK are imposing restrictions on crypto purchases. In November last year, Santander UK and Starling Bank imposed similar restrictions on money transfers to crypto exchanges.
What do you think of Nationwide and HSBC restricting crypto purchases? Let us know in the comment section below.
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Source: Crypto News Deutsch
