• HSBC and Nationwide have imposed new restrictions on cryptocurrency purchases in the U.K.
• Nationwide has introduced a daily card limit of 100 British pounds for Flexone accounts and 5,000 pounds for other current account types.
• HSBC has prohibited customers from using its credit cards to purchase cryptocurrencies due to their high-risk nature.
New Restrictions on Cryptocurrency Purchases in U.K.
HSBC and Nationwide have recently imposed new restrictions on cryptocurrency purchases in the United Kingdom (U.K.). The two financial institutions cited a warning from the Financial Conduct Authority (FCA), which is the British regulator overseeing the financial services industry, regarding the risks involved in purchasing cryptocurrencies.
Nationwide’s Crypto Purchase Restrictions
British financial institution Nationwide Building Society sent an email to its customers on Thursday to inform them of restrictions on cryptocurrency purchases. According to the email shared by several people on Twitter, Nationwide wrote that they will be introducing limits on card payments made to crypto exchanges from a current account, with a daily card limit of 100 British pounds for Flexone accounts and 5,000 pounds for other current account types. Furthermore, Nationwide has also disallowed payments to crypto exchanges using a Nationwide credit card nor any additional card holder being able to use it either.
HSBC Disallows Crypto Purchases
Last week, several people reportedly received an email from banking giant HSBC regarding crypto purchases stating that it will no longer allow cryptocurrency purchases using their credit cards from February 23rd 2023 onwards due to their high risk nature as advised by Financial Conduct Authority (FCA). The bank further emphasized that if something goes wrong with such investments it’s unlikely you’ll be protected by the Financial Ombudsman Service or the Financial Services Compensation Scheme.
HSBC Joins Metaverse
Despite having taken an anti-crypto stance when it comes to allowing customers to purchase cryptocurrencies, HSBC has filed trademark applications for a wide range of digital currency and metaverse products and joined metaverse as well.
Conclusion
As more banks across U.K are placing restrictions on cryptocurrency related transactions like purchase or usage of credit cards, investors should always be aware of all potential risks associated with such investments before taking any action involving cryptocurrencies so as not fall into any potential traps set out by miscreants or bad actors who prey upon unsuspecting investors looking for quick gains without realizing risks involved in these kinds of investments .