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HSBC and Nationwide place fresh restrictions on crypto purchases in UK

HSBC and Nationwide place fresh restrictions on crypto purchases in UK

New limitations on the acquisition of cryptocurrencies in the United Kingdom have been implemented by banking giants HSBC and Nationwide.

Notably, the two financial institutions highlighted a warning issued by the Financial Conduct Authority (FCA), which is the British regulator that oversees the financial services sector, on the dangers associated with the purchase of cryptocurrencies. 

It has been reported that Nationwide, issued an email to its clients on Thursday, March 2, informing them of limits on the purchase of cryptocurrencies. According to an email that was posted by Nationwide and distributed by many users on Twitter, the company said, “We will be introducing restrictions on purchasing cryptocurrency from 28 February,” two days after the changes were made, stating:

“The Financial Conduct Authority (FCA), who regulate the financial services industry, has highlighted certain risks associated with purchasing crypto currency. <..> We will be introducing limits on card payments made to crypto exchanges from a current account,” the email continues, adding that the new daily card limit is 100 British pounds for Flexone accounts and 5,000 pounds for other current account types.”

Nationwide restricts crypto purchases. Source: Nationwide

HSBC removes crypto purchases with credit cards

Over the previous week, a number of users on Twitter published an email that they said was sent to them discussing purchases of cryptocurrencies by the multinational financial corporation HSBC. HSBC reportedly wrote in the email:

“From 23 February 2023, we’ll no longer allow cryptocurrency purchases using our credit cards. This is because of the possible risk to you. The Financial Conduct Authority has warned against investing in crypto assets, as they’re considered very high risk, speculative investments,” the bank emphasized.”

Purchases of cryptocurrencies are being restricted by an increasing number of banks in the United Kingdom. Both Santander UK and Starling Bank implemented similar limitations on the movement of funds to cryptocurrency exchanges last November.

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