A couple of the largest banks based in the United Kingdom have taken a major step against cryptocurrency purchases by local customers.
According to the reports, retail customers in the United Kingdom are going to face huge problems pertaining to their crypto-purchasing activities.
HSBC Bars Crypto Purchases
HSBC Holdings, the largest banking firm in the United Kingdom has made an announcement pertaining to cryptocurrency purchases in the country.
The banking firm has announced that retail customers in the country will no longer be able to purchase cryptocurrencies.
The utility of crypto purchases has been barred for retailers who use credit cards for purchasing cryptocurrencies. The bank has made an announcement that the ban will soon be implemented for all UK-based retail customers.
HSBC Holdings is not the only banking solution that has announced the banning of crypto purchases.
Another major bank in the United Kingdom, the Nationwide Building Society has also followed the same lea as HSBC Holdings.
It is important to clarify that these aren’t the only banks that have decided to take an aggressive step against crypto purchases.
Banks from around the world, especially the United States have been aggressively dealing with crypto purchases. They have started to impose very strict and firm regulations against the purchases and use of cryptocurrencies.
HSBC and the Nationwide Building Society banks have just joined the list of other banks banning the purchases of cryptocurrencies using credit cards.
What has forced the Banks?
A report was just published on March 2 where the reasons were highlighted for the UK-based banks imposing strict restrictions on crypto usage.
According to market experts, it is mainly because of the intervention of the regulatory authorities that has put so much pressure on the local banking firms.
Due to their pressure, the banking solutions based in the United Kingdom have been forced to take such strict measures.
The regulatory authorities in the United Kingdom have been very firm and straightforward against the usage of cryptocurrencies.
They have been warning investors to be very careful and cautious when investing in cryptocurrencies. As for the banks, they have been warned not to interact with cryptocurrency firms or entities that are not regulated at all.
They have asked them to be very cautious no matter the regulatory status of the crypto firms in the market.
Strict Limits on Credit/Debit Cards
According to the latest decision made by the respective banks, retail customers will no longer be able to purchase cryptocurrencies. The ban has been implemented especially for credit card purchases.
As for debit cards, banking firms have imposed a limit on the purchases of cryptocurrencies. They have set the limit to £5,000 ($5,965) on a daily basis while using the debit cards.
It was the end of February when HSBC Holdings imposed a ban on customers for using credit cards for purchasing cryptocurrencies.
According to bank officials, they are worried about the safety of their customers. Therefore, they do not want to take any risks when it comes to their funds.
The bank has clarified that the first priority for them is the safety of their customers and their personal/financial data.
They are also acting upon the warnings and advice that have been communicated by the financial watchdog of the United Kingdom.
The financial watchdog in the United Kingdom looking after the crypto and digital asset activities is the Financial Conduct Authority (FCA).
More Banks Following the Trend
Other banking firms in the United Kingdom are also reviewing the restrictions and the processes that go behind the purchases of cryptocurrencies.
They may also impose strict regulatory restrictions on the purchases of cryptocurrencies in the upcoming days.
As per the sources, other banks thinking about implementing the same rules include Lloyds Banking Group, Natwest Group, and Santander.