The use of digital currencies by its clients is being restricted by two of the biggest banks in the world. Customers of the international banking group HSBC Holdings PLC, commonly known as HSBC, do not permit clients to buy cryptocurrencies using their credit cards. According to several sources, the organization would have notified its consumers about the new policy a few weeks ago. Last week, some bank customers used Twitter to call attention to the most recent limitation.
What Prohibitions did HSBC and Nationwide Put on Crypto Assets?
HSBC stated that the decision was made owing to the potential danger to clients in the notification that was circulated by many people. Although they are regarded as exceptionally high-risk speculative investments, the Financial Conduct Authority has issued a warning against investing in crypto assets. The financial ombudsman service or the financial services clearing system is unlikely to safeguard you in the event of a problem, HSBC bank stated.
The action was not unique, as another major British bank also made the decision to place limits on virtual currencies. Last week, Nationwide informed its clients that it was imposing daily restrictions of 5,000 pounds ($5,965) on purchases made using debit cards with cryptocurrency holdings.
They seem Averse Regarding the Cryptocurrency Field
The goal of HSBC to reduce user exposure to cryptocurrency has been pursued previously. The bank already has MicroStrategy Stock Purchase (MSTR) limitations in place as of 2021, claiming a change in internal policy that places constraints on dealing with digital currencies.
HSBC is ranked as the second largest bank in Europe, behind BNP Paribas, and the eighth largest bank in the world by assets, with more than 32 million clients in 62 countries. With more than 16 million members and its main office in Swindon, England, Nationwide is the seventh-largest cooperative financial organization.
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