The financial institutions HSBC Holdings and Nationwide National Building Society have introduced new regulations that establish restrictions on the purchasing of cryptocurrencies in the United Kingdom.
Both banks, according to a story report by Bloomberg, “referred to warnings given by the Financial Conduct Authority, which has branded cryptocurrency as high risk for many years.”
For purchases involving bitcoin, credit cards will no longer be accepted anywhere in the country. It is also said to be setting daily limits of 5,000 British pounds ($5,965) on the amount that may be spent using debit cards to acquire bitcoin assets.
We will not permit the use of credit cards issued by Nationwide for making payments to cryptocurrency exchanges. According to the information sent in an email, “Neither you nor any subsequent card holders will be allowed to use a Nationwide credit card to buy bitcoin.”
Customers of HSBC were informed a month ago that they were unable to use their credit cards to purchase cryptocurrencies. In letters that were sent to HSBC customers, the company informed them that “we will no longer enable cryptocurrency transactions using our credit cards as of February 23, 2023.”
With reference to the dangers that are associated with cryptocurrency, HSBC noted, “If anything goes wrong, it is doubtful that you would be covered by the Financial Ombudsman Service or the Financial Services Compensation Scheme.”
Santander, Natwest Group, and Lloyds Banking Group are other examples of other U.K. financial institutions that have restrictions on their cryptocurrency services. In the aftermath of the several crises that have occurred in the cryptocurrency industry over the last year, crypto-friendly institutions are coming under intense examination all around the globe.
FCA has issued fines to unlicensed cryptocurrency ATMs located around Leeds city. Operators of cryptocurrency automated teller machines (ATMs) in the United Kingdom are required to register with the Financial Conduct Authority (FCA) and comply with the country’s Money Laundering Laws.
Compiled by Coinbold