New limitations on the purchase of cryptocurrencies in the UK have been put in place by HSBC and Nationwide. The two financial institutions cited a warning about the dangers of buying cryptocurrency from the Financial Conduct Authority (FCA), a British watchdog of the financial services sector.
The Nationwide Building Society, a British financial institution, allegedly informed its clients on Thursday via email of the limitations on cryptocurrency purchases. Nationwide allegedly stated in an email that was widely distributed on Twitter that “We will be putting limits on purchasing crypto currency starting 28 February” and went on to explain:
The Financial Conduct Authority (FCA), which oversees the financial services sector, has called attention to a few dangers connected with buying cryptocurrency.
In addition, the new daily card limit is set at 100 British pounds for Flexone accounts and 5,000 pounds for other current account types. “We will be introducing limits on card payments made to crypto exchanges from a current account,” the email says.
Nationwide allegedly sent the following email two days after the crypto limits took effect, in which it provided more information:
Using a Nationwide credit card to pay for bitcoin exchanges is not permitted. You and any extra cardholders won’t be able to buy cryptocurrency with a Nationwide credit card.
A number of users on Twitter published an email from the world’s largest bank, HSBC, last week that purported to be about cryptocurrency purchases. In the email, HSBC reportedly wrote:
We’ll stop allowing credit card purchases of cryptocurrencies as of February 23, 2023.
“Due to the potential risk to you, this is. The Financial Conduct Authority has advised against purchasing crypto assets since they are regarded as speculative investments with a very high level of risk, the bank highlighted. It’s unlikely that the Financial Ombudsman Service or the Financial Services Compensation Scheme will be able to safeguard you if something goes wrong.
When it comes to letting customers buy cryptocurrencies, HSBC has adopted an anti-crypto stance; yet, the bank has submitted trademark applications for a variety of digital currency and metaverse products. It is now a part of the metaverse. Purchases of cryptocurrencies are being restricted by an increasing number of British institutions. Similar limits on money transfers to cryptocurrency exchanges were put in place by Starling Bank and Santander UK in November of last year.