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HSBC Holdings plc And Nationwide Building Society Banned retail customers’ access to cryptocurrencies in another episode of UK Banks recently reacted to the crypto industry legal and regulatory issues.
HSBC Says It Banned Customers From Buying Crypto With Its Credit Card Bloomberg In February informed of, The report quoted the bank as saying,
“This is because of the potential risk to customers.”
More information about the nationwide decision is available. Credit cards can no longer be used for crypto purchases, and banks are implementing a £5,000 ($6,000) daily limit on debit card purchases, announcement where did it go, For account types designed for young people up to the age of 23, the daily limit is now £100 ($120).
“These will apply where we identify payments to crypto exchanges,” it said, adding:
“These limits apply whenever you use your card to make a payment. This includes using digital wallets, such as big pay Or Google Wallet,
Additionally, card payments made to major crypto exchanges binance Has been banned and will be rejected – which follows “similar action from other providers”.
“Even with your express consent in person or by telephone, we cannot lift the restriction and allow you to make payments to Binance,” Nationwide said.
However, users can still withdraw funds held by Binance to their nationwide accounts.
As to the reason behind these decisions, both the banks pointed to Financial Conduct Authority ,FCA), which issued a warning about the risks that come with buying crypto.
and not only this regulator, but International Monetary Fund ,International Monetary Fund) And this Financial Action Task Force ,FATF) as well as keep warning banks about allowing crypto purchases, which they say crypto assets could pose a risk to the traditional financial system.
America federal Reserve ,irrigated) as well as saying that financial institutions should be mindful of the “potentially increased liquidity risks” that come with certain sources of funding from crypto-related entities.
Other UK institutions that have tightened restrictions placed on crypto-related businesses over the past few years include Banco Santander SA, Lloyds Banking Group plcAnd Natwest Group Plc,
Notably, while many banks have limitations concerning crypto exchanges, Binance remains a particularly popular institution to ban.
Meanwhile, crypto-friendly banks silvergate announced earlier this week that it would not be able to file its annual financial report to the US Securities and Exchange Commission ,seconds) at the time and was evaluating its ability to stay in business. bank shares fell More than 55% on the Thursday following the announcement.
Silvergate was among the lenders worst hit ftx Exchange in November last year. This faced a bank run And $5.2 billion of debt securities had to be sold at significant losses to cover nearly $8.1 billion in user withdrawals. As a result, it incurred a loss of $718 million, which reportedly exceeded the bank’s total profits since 2013.
This resulted in a number of crypto firms that parted ways with Crypto Bank to exit. micro strategy And lanyard denied Was there any meaningful risk to Silvergate, and many other crypto companies, including coinbase, paxos, Galaxy DigitalAnd Krakenterminated its relationship with the bank following the filing on Wednesday.
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learn more:
, Silvergate Bank stock plunged after reports of DOJ probe into ties with FTX and Alameda
, Boris Johnson’s Brother Quits Binance Unit Advisory Role Amid ‘Finance Transparency Concerns’ and Market Turmoil – Here’s What Happened
, ‘UK Must Move Faster’ on Crypto Regulation
, UK law enforcement and regulators join forces to bust illegal crypto ATMs
