HSBC and Nationwide have imposed new restrictions on digital currency purchases in the United Kingdom The two financial institutions cited a warning from the Financial Conduct Authority (FCA), the British regulating authority overseeing the financial services industry, regarding the dangers involved in purchasing cryptocurrencies.
Nationwide’s Cryptocurrency Buy Restrictions
British financial institution Nationwide Building Society allegedly sent an email to its customers on Thursday to inform them of restrictions on digital currency purchases. Reports by the email shared by plenty of people on Twitter platform, Nationwide wrote, “We will be introducing restrictions on purchasing cryptocurrency currency from 28 February,” elaborating:
The Financial Conduct Authority (FCA), who regulate the financial services industry, has highlighted certain dangers associated with purchasing cryptocurrency currency.
“We will be introducing limitations on card payments made to cryptocurrency exchanges from a current account,” the email continues, adding that the new daily card limit is 100 British pounds for Flexone accounts and 5,000 pounds for other current account types.
Nationwide further detailed in the email which it allegedly sent two days after the cryptocurrency restrictions went into effect:
We won’t be allow payments to cryptocurrency exchanges using a Nationwide credit card … Neither you nor any additional card older will be able to use a Nationwide credit card to buy cryptocurrency currency.
HSBC Disallows Cryptocurrency Purchases Using Its Credit Cards
Past week, plenty of people on Twitter platform likewise shared an email they claimed to have received from the banking giant HSBC regarding cryptocurrency purchases. Reports by the email, HSBC wrote:
From 23 February 2023, we’ll no longer allow digital currency purchases using our credit cards.
“This is as a result of the possible danger to you. The Financial Conduct Authority has warned against investing in cryptocurrency assets, as they’re considered very high danger, 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.”
Although while HSBC has taken an anti- cryptocurrency stance in the case of allowing customers to buy digital currencies, the bank recently filed trademark applications for a wide range of digital currency and metaverse network products. It has likewise joined the metaverse.
A growing number of banks in the United Kingdom are placing restrictions on cryptocurrency purchases. In November a year ago, Santander UK and Starling Bank imposed similar restrictions on fund transfers to cryptocurrency exchanges.