HSBC, Nationwide Impose New Restrictions on Cryptocurrency Purchases in UK

HSBC and Nationwide have imposed new restrictions on cryptocurrency purchases in the U.K. The two financial institutions cited a warning from the Financial Conduct Authority (FCA), the British regulator overseeing the financial services industry, regarding the risks involved in purchasing cryptocurrencies.

British financial institution Nationwide Building Society allegedly sent an email to its customers on Thursday to inform them of restrictions on cryptocurrency purchases. According to the email shared by several people on Twitter, Nationwide wrote, “We will be introducing restrictions on purchasing crypto currency from 28 February,” elaborating:

The Financial Conduct Authority (FCA), who regulate the financial services industry, has highlighted certain risks associated with purchasing crypto currency.

“We will be introducing limits on card payments made to crypto exchanges from a current account,” the email continues, adding that the new daily card limit is 100 British pounds for Flexone accounts and 5,000 pounds for other current account types.

Nationwide further detailed in the email which it allegedly sent two days after the crypto restrictions went into effect:

We will not allow payments to crypto exchanges using a Nationwide credit card … Neither you nor any additional card older will be able to use a Nationwide credit card to purchase crypto currency.

Last week, several people on Twitter also shared an email they claimed to have received from the banking giant HSBC regarding crypto purchases. According to the email, HSBC wrote:

From 23 February 2023, we’ll no longer allow cryptocurrency purchases using our credit cards.

“This is because of the possible risk to you. The Financial Conduct Authority has warned against investing in crypto assets, as they’re considered very high risk, speculative investments,” the bank emphasized. “If something goes wrong, it’s unlikely you’ll be protected by the Financial Ombudsman Service or the Financial Services Compensation Scheme.”

While HSBC has taken an anti-crypto stance when it comes to allowing customers to purchase cryptocurrencies, the bank recently filed trademark applications for a wide range of digital currency and metaverse products. It has also joined the metaverse.

A growing number of banks in the U.K. are placing restrictions on crypto purchases. In November last year, Santander UK and Starling Bank imposed similar restrictions on fund transfers to crypto exchanges.

What do you think about Nationwide and HSBC restricting crypto purchases? Let us know in the comments section below.