HSBC and Nationwide Building Society Tighten Restrictions on UK Retail Customers’ Access to Encrypted Assets

03/03/2023 16:24 • Blockchain Buzz • 134 views

It is reported that according to a Bloomberg message, HSBC and Nationwide Building Society have strengthened restrictions on UK retail customers’ access to encrypted assets. Nationwide Building Society has informed customers that Nationwide’s daily limit for the purchase of encrypted assets by debit card is 5000 pounds (5965 dollars), and its credit card can no longer be used to purchase encrypted assets. HSBC said that from last month, it banned customers from purchasing cryptocurrency through its credit card. HSBC said in an email statement: “This is because customers may face risks”. Both banks mentioned the warning issued by the Financial Conduct Authority, which has listed cryptocurrency as high-risk for many years.

Bloomberg: HSBC and Nationwide prohibit UK customers from purchasing cryptocurrency through credit card

Interpret the above information:

The recent Bloomberg message reported that two major UK banks, HSBC and Nationwide Building Society, have implemented stricter restrictions on retail customers’ access to encrypted assets such as cryptocurrency. These banks have cited the warning issued by the Financial Conduct Authority, which categorizes cryptocurrency as a high-risk investment.

Nationwide Building Society has informed its customers that it has set a daily limit of £5,000 for the purchase of encrypted assets by debit card, while its credit card can no longer be used for such transactions. Meanwhile, HSBC has banned its customers from purchasing cryptocurrency using their credit cards since last month. In its email statement, HSBC justified its move by saying that its customers may face risks when investing in cryptocurrency.

The restrictions imposed by these banks are not surprising, given the volatility of the cryptocurrency market and its susceptibility to fraud and cybercrime. The Financial Conduct Authority’s warning is not new, as it has been raising concerns about the risks associated with cryptocurrency for some time now. In fact, the regulatory body has proposed a number of measures to address the potential harm that cryptocurrency can cause to consumers, such as tighter regulation of crypto exchanges, mandatory consumer warnings, and restrictions on crypto-related products.

Despite the warnings and restrictions, cryptocurrency continues to attract investors who are drawn to its potential for high returns and its decentralized nature. This has led some critics to argue that the restrictions being imposed by banks could hinder the development and adoption of cryptocurrency, as well as stifle innovation in the financial sector.

In conclusion, HSBC and Nationwide Building Society’s move to restrict retail customers’ access to encrypted assets is in line with the Financial Conduct Authority’s warning on the high risks associated with cryptocurrency. While the restrictions may be seen as a setback for the cryptocurrency industry, they highlight the need for greater regulatory oversight in this space to protect consumers from fraud and financial harm.

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