After analyzing all risk factors and destabilization associated with cryptocurrencies, two big banks in the United Kingdom, HSBC, and Nationwide have imposed restrictions on cryptocurrency purchases.
According to sources, Nationwide, one of the leading financial institutions in the United Kingdom has informed its customers via email that they are imposing restrictions on cryptocurrency purchasing. In the email sent by Nationwide, they clearly stated that purchasing limits have been set. The limits for Flexone accounts are £100 and for Current accounts, £5000.
People seem unhappy with Nationwide’s lack of transparency in their decision-making process regarding cryptocurrency purchases. According to customers, Nationwide sent the email two days after the restrictions came into effect. Additionally, the bank advised its clients to take their time and seek guidance before making any cryptocurrency investments.
Cryptocurrencies, like Bitcoin, have gained popularity recently as more and more investors try to profit from their extreme volatility and possibility for quick gains.
Similarly, HSBC has announced that they will not allow users to purchase cryptocurrencies using credit cards. The bank cited concerns about their customer’s safety and security due to the volatility of the cryptocurrency market.
The decision by both banks comes after the Financial Conduct Authority warned people to invest cautiously and seek advice from professionals before investing in cryptocurrencies. Additionally, they stated that if people face any fraud or data breaches, banking regulatory bodies will not be able to protect them. Contrary to this they have filed trademarks for a wide range of digital currencies and Metaverse.
Due to the risks and volatility associated with cryptocurrencies, we can expect more and more banks to impose restrictions. Therefore, HSBC and Nationwide are not the first nor the last banks to impose restrictions on purchasing cryptocurrencies.
