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UK banks HSBC, Nationwide to ban crypto purchases with credit cards: Report

March 2, 2023No Comments


British banks HSBC Holdings and Nationwide Building Society are banning cryptocurrency purchases via credit cards for retail customers. They join a growing list of banks in the country to tighten restrictions on digital assets.

A Bloomberg report from March 2 claims The step back is a response to warnings from UK regulators and scandals surrounding the crypto industry. Nationwide is reportedly enforcing daily limits of ยฃ5,000 ($5,965) on debit card purchases of crypto assets, while credit cards will no longer be available for crypto transactions.

HSBC customers were banned from making crypto purchases with their credit cards last month. โ€œThis is due to the potential risk to customers,โ€ HSBC wrote in an email seen by Bloomberg. In both cases, the banks pointed to the warnings issued by the Financial Conduct Authority (FCA), about the risks related to crypto assets.

Other banks in the UK with restrictions on crypto services include Santander, Natwest Group and Lloyds Banking Group. Most of the restrictions target the Binance cryptocurrency exchange. HSBC credit card payments prohibited to Binance in August 2021, citing concerns about the regulatory status of the exchange in the country.

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UK authorities are cracking down on cryptocurrency companies. the fca proposed in February a set of rules that could subject crypto company executives to two years in prison if they fail to meet certain conditions related to the promotion. โ€œCrypto asset companies trading to UK consumers, including companies based abroad, should prepare for this regime,โ€ the watchdog said in a statement.

the financial authority stated that all crypto exchange providers โ€” including crypto ATM operators โ€” must be registered and comply with money laundering regulations.

A highly anticipated consultation document for the upcoming UK crypto regulation was recently released. The proposals aim to establish the UK financial services sector at the forefront of cryptocurrency and avoid the strict control measures that have gained traction around the world. The paper covers a wide range of topics, including algorithmic stablecoins, non-fungible tokens (NFTs), and initial coin offerings (ICOs).