HSBC, Nationwide Impose New Restrictions on Cryptocurrency Purchases in UK

HSBC, Nationwide Prohibit Crypto Purchases Using Their Credit Cards in UK

HSBC and Nationwide have imposed new restrictions on cryptocurrency purchases within the U.Okay. The two monetary establishments cited a warning from the Financial Conduct Authority (FCA), the British regulator overseeing the monetary companies business, relating to the dangers concerned in buying cryptocurrencies.

Nationwide’s Crypto Purchase Restrictions

British monetary establishment Nationwide Building Society allegedly despatched an e mail to its clients on Thursday to tell them of restrictions on cryptocurrency purchases. According to the e-mail shared by a number of folks on Twitter, Nationwide wrote, “We will be introducing restrictions on purchasing crypto currency from 28 February,” elaborating:

The Financial Conduct Authority (FCA), who regulate the monetary companies business, has highlighted sure dangers related to buying crypto foreign money.

“We will be introducing limits on card payments made to crypto exchanges from a current account,” the e-mail continues, including that the brand new each day card restrict is 100 British kilos for Flexone accounts and 5,000 kilos for different present account sorts.

Nationwide additional detailed within the e mail which it allegedly despatched two days after the crypto restrictions went into impact:

We won’t permit funds to crypto exchanges utilizing a Nationwide bank card … Neither you nor any extra card older will have the ability to use a Nationwide bank card to buy crypto foreign money.

HSBC Disallows Crypto Purchases Using Its Credit Cards

Last week, a number of folks on Twitter additionally shared an e mail they claimed to have obtained from the banking big HSBC relating to crypto purchases. According to the e-mail, HSBC wrote:

From 23 February 2023, we’ll not permit cryptocurrency purchases utilizing our bank 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 financial institution emphasised. “If something goes wrong, it’s unlikely you’ll be protected by the Financial Ombudsman Service or the Financial Services Compensation Scheme.”

While HSBC has taken an anti-crypto stance relating to permitting clients to buy cryptocurrencies, the financial institution just lately filed trademark applications for a variety of digital foreign money and metaverse merchandise. It has additionally joined the metaverse.

A rising variety of banks within the U.Okay. are inserting restrictions on crypto purchases. In November final 12 months, Santander UK and Starling Bank imposed comparable restrictions on fund transfers to crypto exchanges.

What do you concentrate on Nationwide and HSBC limiting crypto purchases? Let us know within the feedback part under.

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