UK Banks Crack Down on Crypto: HSBC and Nationwide Join the Ban
Recently, HSBC and Nationwide Building Society in the United Kingdom have prohibited their customers from buying cryptocurrencies, following a warning from the British regulator, the Financial Conduct Authority (FCA), about the high-risk nature of crypto investments.
HSBC announced that it stopped clients from using their credit cards to purchase cryptocurrencies last month, citing financial risks.
Meanwhile, Nationwide has reportedly emailed its customers that they cannot use their credit cards to buy cryptocurrencies.
Cryptocurrencies have been linked to money laundering, drug trafficking, and terrorism financing, and the security of cryptocurrency exchanges and wallets is also a significant issue.
The cryptocurrency market is characterized by high volatility, which can result in substantial gains or losses for investors. The lack of regulation in the industry is also a concern, as it can lead to scams and illegal activities.
The adoption and use of crypto are still limited, which makes their value subject to speculation rather than actual usage. As a result, many financial institutions view cryptocurrencies differently.
Some see them as a threat to their business, while others are exploring opportunities to leverage them to improve their operations and services.
Despite HSBC’s recent ban on crypto purchases, the bank has applied for trademark rights for various digital currency and metaverse products. Moreover, the bank is now part of the metaverse.