HSBC and Nationwide have placed new restrictions on cryptocurrency purchases in the UK. The two financial institutions cited a warning from the Financial Conduct Authority (FCA), the British regulator that oversees the financial services industry, regarding the risks involved in buying cryptocurrencies.
Nationwide Crypto Purchase Restrictions
British financial institution Nationwide Building Society reportedly sent an email to its customers on Thursday informing them of restrictions on cryptocurrency purchases. According to the email shared by multiple people on Twitter, Nationwide wrote: “We will be introducing restrictions on the purchase of cryptocurrency starting February 28,” explaining:
The Financial Conduct Authority (FCA), which regulates the financial services industry, has highlighted certain risks associated with buying cryptocurrencies.
“We will be introducing limits on card payments made to crypto exchanges from a checking account,” the email continues, adding that the new daily card limit is £100 for Flexone accounts and £5,000 for others. types of checking accounts
Nationwide went into more detail in the email it allegedly sent two days after the crypto restrictions went into effect:
We will not allow payments to cryptocurrency exchanges with a Nationwide credit card… Neither you nor any previous add-on card may use a Nationwide credit card to purchase cryptocurrency.
HSBC does not allow cryptocurrency purchases with its credit cards
Last week, several people on Twitter also shared an email they claimed to have received from banking giant HSBC regarding cryptocurrency purchases. According to the email, HSBC wrote:
As of February 23, 2023, we will no longer allow cryptocurrency purchases with our credit cards.
“This is due to the potential risk to you. The Financial Conduct Authority has warned against investing in crypto assets as they are considered very high risk speculative investments,” the bank 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 has taken an anti-crypto stance when it comes to allowing customers to buy cryptocurrency, the bank 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 placing restrictions on cryptocurrency purchases. In November last year, Santander UK and Starling Bank placed similar restrictions on fund transfers to cryptocurrency exchanges.
What do you think of Nationwide and HSBC restricting cryptocurrency purchases? Let us know in the comments section.
image credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or a solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
