Regulator Warnings Prompt HSBC and Nationwide Banks to Limit Crypto Transactions
HSBC Holdings Plc and Nationwide Building Society imposed limits on retail customers' access to cryptoassets in another episode of UK banks reacting to the recent crypto industry legal and regulatory issues.
HSBC said that, in February, it restricted customers from buying crypto with its credit cards, Bloomberg reported. The report quoted the bank as saying that,
"This is because of the possible risk to customers."
More information in available on Nationwide's decision. Credit cards can no longer be used for crypto purchases, and the bank is applying daily limits of £5,000 ($6,000) on debit card purchases, the announcement stated. For an account type designed for young people until the age of 23, the daily limit is now £100 ($120).
"These will apply where we identify payments to crypto exchanges," it said, adding:
"These limits apply any time you use your card to make a payment. That includes using a digital wallet, such as Apple Pay or Google Wallet."
Additionally, card payments made to the major crypto exchange Binance have been restricted and will be declined - which follows "similar action from other providers."
"Even with your direct consent in person or by telephone, we can’t remove the restriction and allow you to make a payment to Binance," Nationwide said.
Users can, however, still withdraw the money they have with Binance into their Nationwide accounts.
As to the reason behind these decisions, both banks pointed to the Financial Conduct Authority (FCA), which had issued warnings about the risks that come with buying crypto.
And not only this regulator, but the International Monetary Fund (IMF) and the Financial Action Task Force (FATF) as well keep warning banks about allowing crypto purchases, citing what they say
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