• Two major financial institutions in the UK, HSBC and Nationwide Building Society, have imposed new restrictions on cryptocurrency purchases in accordance with a warning from the Financial Conduct Authority (FCA).
• Customers of Nationwide can no longer purchase cryptocurrencies using their credit cards and are subjected to a daily limit of 100 British pounds for Flexone accounts or 5,000 pounds for other current account types.
• HSBC has also disallowed purchases of cryptocurrency using its credit cards, citing the “possible risk” to its customers as noted by the FCA.
New Restrictions on Cryptocurrency Purchases in UK
Two major financial institutions in the U.K., HSBC and Nationwide Building Society, have recently imposed new restrictions on cryptocurrency purchases according to a warning from the Financial Conduct Authority (FCA).
Nationwide’s Crypto Purchase Restrictions
Nationwide has informed its customers via email that they will no longer be allowed to purchase cryptocurrencies using their credit cards. They also have set up daily limits of 100 British pounds for Flexone accounts or 5,000 pounds for other current account types.
HSBC Disallows Crypto Purchases Using Its Credit Cards
HSBC has taken an anti-crypto stance when it comes to allowing customers to purchase cryptocurrencies through their credit cards. The bank cited “possible risk” as noted by the FCA and wrote that if something goes wrong, customers will not be protected by the Financial Ombudsman Service or Financial Services Compensation Scheme.
Risk Warning from Financial Conduct Authority
The FCA had issued a warning about investing in crypto assets as they are considered very high risk and speculative investments. The regulator urged investors to exercise caution when investing in such assets due to their volatile nature.
HSBC’s Digital Currency Trademark Applications
Despite its anti-crypto stance regarding customer purchases through its credit cards, HSBC has filed trademark applications for several digital currency products and services as well as metaverse products. The bank also joined forces with several other banks worldwide within the metaverse space