March 30, 2023

UK Banks Implement New Restrictions on Cryptocurrency Purchases

HSBC, Nationwide Building Society, and other major banks in the UK have reportedly implemented a new set of rules aimed at restricting the purchase of cryptocurrencies. The move comes amid a tumultuous year for the crypto industry, which has seen the failure of several industry giants.

According to a Bloomberg report, HSBC, the largest banking institution in the UK, has banned clients from buying cryptocurrencies via their credit cards, citing “possible risks.” Nationwide, another leading British bank, has imposed the same restriction and applied a daily limit of £5,000 (nearly $6,000) on debit-card purchases of digital assets.

Other banks, including Lloyds Banking Group Plc, Banco Santander SA, and Natwest Group Plc, have also announced similar rules. Santander’s customers, for example, have a £1,000 ($1,200) limit per transaction and a total monthly limit of £5,000 ($6,000).

The move by these banks is not entirely surprising, as many financial institutions have been hesitant to embrace cryptocurrencies due to their perceived volatility and lack of regulation. However, it is worth noting that some banks, such as Barclays and Revolut, have taken a more open approach to cryptocurrencies, allowing their customers to buy and sell digital assets.

Despite the restrictions, the demand for cryptocurrencies continues to grow, with Bitcoin recently hitting an all-time high of over $60,000. As such, it remains to be seen whether these new rules will have a significant impact on the crypto market or if they will simply be seen as a minor inconvenience by those looking to invest in digital assets.

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