Banks Now Clamp Down On Crypto Purchases With Daily Limits And Credit Card Ban

Key Points:

• Nationwide and HSBC have joined other UK banks in restricting customers’ access to cryptocurrencies.
• Nationwide has introduced a daily limit of £5,000 on debit-card purchases of crypto-assets and has barred using credit cards to buy cryptocurrency.
• Since last month, HSBC has banned customers from using credit cards to purchase cryptocurrencies, citing high risk and warnings issued by the FCA.

According to Bloomberg, Nationwide Building Society and HSBC have become the latest UK banks to restrict customers’ access to cryptocurrencies.

In the last week, Nationwide has introduced daily limits of £5,000 ($5,965) on debit-card purchases of crypto assets and has barred the use of credit cards to buy cryptocurrency.

These accounts include:

• FlexStudent
• FlexGraduate
• FlexBasic
• FlexAccount
• FlexDirect
• FlexPlus

If you have a FlexOne account, you’ll be able to spend up to £100 a day.

If you spend more than this amount on purchases in a day, the transaction will be declined.

If you have a joint account, the daily limits apply to each card. And if you have more than one current account, the limit will apply to each account.

Similarly, HSBC has banned customers from using credit cards to purchase cryptocurrencies since last month, citing the risk to customers and warnings issued by the Financial Conduct Authority (FCA) in the past years that digital assets are a high-risk investment.

For those unaware, HSBC (Hongkong and Shanghai Banking Corporation) is a multinational investment bank and financial services organization. It was founded in 1865 and is headquartered in London, England. HSBC provides services such as commercial banking, wealth management, investment banking, and retail banking to individuals, corporations, and institutions worldwide. It operates in over 60 countries and has a global network of over 3,800 offices.

The move follows restrictions placed by Banco Santander, Lloyds Banking Group, and Natwest Group, among others, and most major banks have implemented exchange-specific restrictions, with Binance Holdings being the most popular target. Several US banks with close ties to the digital asset sector are also facing growing scrutiny.

In November, the collapse of the crypto exchange FTX prompted fresh warnings about the risks associated with cryptocurrencies. Global financial regulators have repeatedly cautioned banks against the risks that digital-assets can pose to the traditional financial system, including the Financial Stability Board, the International Monetary Fund, and the Financial Action Task Force.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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