• HSBC and Nationwide Building Society have taken measures to limit retail customers access to cryptoassets.
• The banks are responding to the evolving legal and regulatory landscape surrounding the crypto industry.
• Other UK institutions have tightened restrictions placed on crypto-related businesses over the past few years.
Banks Limit Crypto Transactions
In response to the changing legal and regulatory landscape around cryptocurrencies, HSBC Holdings Plc and Nationwide Building Society have taken steps to limit retail customer access to digital assets. This is due to possible risks that may be posed by these investments.
Nationwide Implements Restrictions
Nationwide has made clear details regarding their decision, including not allowing credit cards from being used for crypto purchases, as well as setting daily limits on debit card purchases at £5,000 ($6,000). Additionally, a reduced daily limit of £100 ($120) has been implemented for a specific account type tailored to young people under age 23. Furthermore, Binance payments have been restricted and will be rejected – despite direct consent in person or by telephone.
Regulatory Warnings Prompt Changes
The Financial Conduct Authority (FCA), International Monetary Fund (IMF), and Financial Action Task Force (FATF) have all warned banks against facilitating cryptocurrency transactions due to the potential risks they may pose towards traditional financial systems. The US Federal Reserve has also advised financial institutions of “potentially heightened liquidity risks” when dealing with crypto-related entities.
Other Banks Follow Suit
Other banks within the UK such as Banco Santander SA, Lloyds Banking Group Plc, and Natwest Group Plc have all taken similar action in tightening restrictions towards cryptocurrency businesses within recent years.
HSBC Holdings Plc and Nationwide Building Society’s actions reflect growing concerns among UK banks about how cryptocurrencies can be used or traded safely – which follows similar trends taking place throughout other parts of the world. Despite these new regulations many users still remain optimistic about cryptocurrency’s future potential within the global economy.