UK banks HSBC, Nationwide to ban crypto purchases with credit cards: Report

United Kingdom babanks HSBC Holdings and Nationwide Building Society are banning cryptocurrency purchases via recognition cards for retail customers. They articulation a increasing database of banks successful the state to tighten restrictions connected integer assets. 

A Bloomberg study connected March 2 claims the measurement backmost is simply a effect to warnings by UK regulators and scandals surrounding the crypto industry. Nationwide is reportedly applying regular limits of £5,000 ($5,965) connected debit-card purchases of crypto assets, portion recognition cards volition nary longer beryllium disposable for crypto transactions.

Customers of HSBC were barred from making crypto purchases with their recognition cards past month. “This is due to the fact that of the imaginable hazard to customers,” HSBC wrote successful an email seen by Bloomberg. In some cases, the banks pointed to warnings issued by the Financial Conduct Authority (FCA), astir the risks related to crypto assets.

Other banks successful the UK with restrictions connected crypto services are Santander, Natwest Group, and Lloyds Banking Group. Most of the restrictions people the crypto speech Binance. HSBC banned recognition paper payments to Binance successful August 2021, citing concerns astir the exchange's regulatory presumption successful the country.

Related: Bank of England has nary tech skills to contented CBDC yet: Deputy governor

Authorities successful the UK are cracking down connected crypto companies. The FCA projected successful February a acceptable of rules that could taxable executives of crypto firms to 2 years successful situation if they don't conscionable definite conditions related to promotion. “Cryptoasset businesses selling to UK consumers, including firms based overseas, indispensable get acceptable for this regime,” said the watchdog successful a statement.

The fiscal authority stated that each crypto speech providers — including crypto ATM operators — indispensable beryllium registered and comply with wealth laundering regulations.

A highly anticipated consultation insubstantial for the UK's upcoming crypto regulation was precocious released. The proposals purpose to found the U.K.'s fiscal services assemblage astatine the forefront of crypto and debar strict power measures that person gained traction worldwide. The papers covers a wide scope of topics, including algorithmic stablecoins, nonfungible tokens (NFTs) and archetypal coin offerings (ICOs).