HSBC Holdings, the UK’s largest bank, has prohibited customers from purchasing cryptocurrencies using their credit cards. Similarly, Nationwide has taken action against digital assets by implementing a £5,000 daily cap on cryptocurrency purchases made with debit cards. These reactions appear to be responses to recent industry scandals and regulatory warnings within the crypto industry.
UK banks tighten restrictions on crypto purchases for customer safety
The US Securities and Exchange Commission (SEC) recently strengthened its regulatory enforcement of digital assets. In response, English banks such as HSBC Holdings have begun to address certain industry-wide concerns by banning customers from using their credit cards to purchase cryptocurrencies. However, this announcement from Britain’s largest bank reflects a broader effort among institutions to ensure regulatory compliance in the digital asset industry.
Nationwide and HSBC have recently implemented restrictions on crypto asset purchases with their debit and credit cards. Specifically, Nationwide imposed a £5,000 daily limit for cryptos purchased via debit card. Meanwhile, HSBC has enforced a total ban on all crypto purchases using credit cards. HSBC has also mentioned that the decision was due to “the possible risk to customers,” as warned by regulators. Both banks have indicated that this is a precautionary measure in light of the warnings issued by various regulatory bodies.