HSBC and Nationwide have cited a warning from the Financial Conduct Authority (FCA), the UK regulator overseeing the financial services industry, about the risks associated with cryptocurrency purchases and have imposed new restrictions on crypto imposed new restrictions on cryptocurrency purchases in the UK.
Nationwide Crypto Purchase Restrictions
Nationwide Building Society, a U.K. financial institution, allegedly sent an email Thursday informing customers of restrictions on cryptocurrency purchases, according to an email shared by several people on Twitter. Nationwide detailed that it “will be introducing restrictions on cryptocurrency purchases beginning February 28.”
The Financial Conduct Authority (FCA), which regulates the financial services industry, highlights certain risks associated with cryptocurrency purchases.
“We will be introducing restrictions on card payments from current accounts to crypto exchanges.” the email continues, adding that the new daily card limit is GBP 100 for Flexone accounts and GBP 5,000 for other current account types.
Nationwide further elaborated in an email allegedly sent two days after the crypto limit went into effect:
Payments to crypto exchanges using Nationwide credit cards are not permitted… Neither you nor additional card seniors will be able to purchase cryptocurrency using your Nationwide credit card.
HSBC will not allow crypto purchases using credit cards
Last week, several people on Twitter also shared an email they claimed to have received from banking giant HSBC regarding crypto purchases. According to the email, HSBC wrote:
Effective February 23, 2023, you will no longer be able to purchase cryptocurrency using your credit card.
“This is due to the potential risk to you. The Financial Conduct Oversight Authority warns you not to invest in crypto assets as they are considered very high-risk and speculative investments,” the bank stressed.” If something goes wrong, you are unlikely to be protected by the Financial Ombudsman Service or the Financial Services Compensation Scheme.”
While HSBC has taken an anti-crypto stance when it comes to allowing customers to purchase cryptocurrencies, the bank recently applied for trademarks for a wide range of digital currency and metaverse products. It also participates in the Metaverse.
More and more banks in the UK are placing restrictions on crypto purchases. Last November, Santander UK and Starling Bank imposed similar restrictions on the transfer of funds to crypto exchanges.
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