HSBC, one of the world’s largest banks, sent an email to its UK customers last week. The text informs that they can no longer buy cryptocurrencies with credit cards.
In justification, HSBC reported that its decision was based on advice from the Financial Conduct Authority (FCA) and is a way to protect the customer itself.
In the bank’s defense, the situation is acceptable since as it is a credit transaction, HSBC would be subject to default risk and has full right to have such a policy.
However, another UK bank, the Nationwide Building Society (NBS), has taken a tougher stance. According to information from its own website, customers can only buy £5,000 (R$31,000) worth of cryptocurrencies per day with their debit card.
While the amount may seem high to many of us Brazilians, it’s worth noting that the minimum wage in the UK is around £1,615 (R$10,000). Moreover, since this money is a debit operation, it belongs to the individual.
HSBC blocks cryptocurrency purchases with credit cards
In an email sent to its clients last week, HSBC says the decision is for investor safety. Basically, the text quotes the recommendations of the FCA, the UK’s main regulatory body.
“As of February 23, 2023, we will no longer allow cryptocurrency purchases with our credit cards”points to the HSBC email that Livecoins saw. “This is because of the potential risk to you. The Financial Conduct Authority (FCA) has warned against investing in crypto assets as they are considered high-risk speculative investments.
So in addition to the regulatory burden on banks in the US, the same is happening in other countries. In other words, as countries fail to ban cryptocurrencies, they attack from the edges.
Nationwide Building Society Bank (NBS) restricts cryptocurrency purchases
Following on from Santander’s same policy, implemented last November, the UK bank Nationwide Building Society is now another one restricting the purchase of cryptocurrencies in debit operations.
“We have introduced daily limits for debit card payments to buy cryptocurrency”points to the website of the NBS. “These limits apply when you use your card to make a payment. Think of using a digital wallet such as Apple Pay or Google Wallet.”
The daily limit is £5,000 and, according to the bank, “If you spend more than this amount on cryptocurrency purchases in a single day, the transaction will be declined.” Like HSBC, the NBS reports that credit card purchases of cryptocurrencies have been suspended.
Finally, the bank announces that it will block any type of payment to Binance, the largest cryptocurrency exchange. “Payments to Binance will remain restricted until further notice as we continue to assess and monitor the situation.” The bank claims that this policy serves to protect its customers.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
