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HSBC and Nationwide tighten restrictions on UK retail customers’ access to encrypted assets

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It is reported that according to a Bloomberg message, HSBC and Nationwide Building Society have strengthened restrictions on UK retail customers\’ access to enc…

HSBC and Nationwide tighten restrictions on UK retail customers access to encrypted assets

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

Interpretation of the news:


HSBC and Nationwide Building Society have recently strengthened their restrictions on UK retail customers’ access to encrypted assets. According to a Bloomberg message, Nationwide customers are now limited to purchasing encrypted assets using their debit card for a maximum amount of £5,000, while credit cards can no longer be used to purchase them. Meanwhile, HSBC has banned customers from purchasing cryptocurrency through its credit card since last month, stating that customers may face risks.

These restrictions are not surprising, considering that the Financial Conduct Authority (FCA) has listed cryptocurrency as high-risk for many years. Both HSBC and Nationwide have mentioned the FCA’s warning in their statements. It is crucial to note that despite the increasing global interest in encrypted assets, the regulation surrounding them remains a grey area. As a result, many financial institutions are wary of their customers engaging with this asset class.

There are several reasons why HSBC and Nationwide have decided to tighten their restrictions. Firstly, cryptocurrency transactions are irreversible, which makes them attractive to fraudsters. Secondly, they often take place outside traditional banking systems, increasing the risk of money laundering and other financial crimes. Lastly, the volatility of cryptocurrency prices has led to concerns about the financial stability of customers who invest in them, which could ultimately have an impact on financial institutions.

Despite the risks associated with encrypted assets, there is a growing demand for them. The United Kingdom is home to several cryptocurrency exchanges and has seen a surge in retail investors in this asset class. The recent restrictions by HSBC and Nationwide may have a short-term impact on the market, but it is unlikely to deter investors from purchasing encrypted assets. Financial institutions need to find a balance between addressing the risks while still meeting the growing demand for these assets.

In conclusion, HSBC and Nationwide’s decision to strengthen their restrictions on retail customers’ access to encrypted assets reflects the increasing concerns about the risks associated with cryptocurrency. While these steps are necessary, the long-term impact of such restrictions on the market remains to be seen.

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