Kevin Helms
A student of Austrian economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of economics and cryptography.
HSBC Nationwide Imposes New Restrictions on UK Cryptocurrency Purchases – Featured Bitcoin News
HSBC and Nationwide have introduced new restrictions on buying cryptocurrency in the UK. The two financial institutions cited a warning from the Financial Conduct Authority (FCA), the UK regulator that oversees the financial services industry, regarding the risks associated with buying cryptocurrencies.
Nationwide restrictions on crypto purchases
The British financial institution Nationwide Building Society is said to have sent an email to its customers on Thursday to inform them of restrictions on the purchase of cryptocurrency. According to the email shared by several people on Twitter, Nationwide wrote: “We will be introducing restrictions on the purchase of cryptocurrency from February 28th,” elaborating:
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 to crypto exchanges from a current account,” 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 it reportedly sent two days after the crypto restrictions went into effect:
We will not allow payments to crypto exchanges with a national credit card… Neither you nor other legacy cards will be able to use a national credit card to buy cryptocurrency.
HSBC does not allow crypto purchases using credit cards
Last week, several people also shared on Twitter an email they claimed to have received from banking giant HSBC regarding crypto purchases. According to the email, HSBC wrote:
From 23 February 2023, we will no longer allow the purchase of cryptocurrency with 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 are considered very high-risk speculative investments, the bank emphasizes. “If something goes wrong, it is unlikely that you will be protected by the Financial Ombudsman Service or the Financial Services Compensation Scheme.”
While HSBC has taken an anti-crypto stance on allowing customers to buy cryptocurrencies, the bank has recently filed trademark applications for a wide range of digital currency and metaverse products. It has also joined the metaverse.
A growing number of UK banks are placing restrictions on crypto purchases. In November last year, Santander UK and Starling Bank introduced similar restrictions on money transfers to crypto exchanges.
What do you think about Nationwide and HSBC restricting crypto purchases? Let us know in the comments section below.
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