British crypto investors may have to search for new ways how to purchase crypto, as banks in the UK are closing doors for crypto purchases via credit cards.
HSBC, Nationwide, and other UK banks have banned crypto purchases via credit and debit cards. The regulators of these financial institutions have cited warnings about the possible dangers associated with such transactions.
According to a Bloomberg report published on March 2nd, the scandals surrounding the crypto industry and warnings from UK’s regulator triggered this move.
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In its report, Bloomberg revealed that Nationwide has imposed a daily limit on crypto asset purchases. Per day, British crypto investors can make crypto purchases of $5,965 (5,000 British pounds). On top of that, the company noted that “it will no longer facilitate crypto transactions via credit cards.”
According to an email sent by HSBC to its clients, the bank “barred crypto transactions via credit card for its customers last month because of the possible associated risks.”
It can be assumed that the alerts from UK’s financial regulators encouraged financial institutions to reinforce digital assets restrictions. It is believed that Nationwide, HSBC, and other banks are responding to the Financial Conduct Authority (FCA) warning on crypto assets.
Lloyds Banking Group, Santander, and Natwest Group are among the banks in the UK that imposed certain crypto-related restrictions.
It is worth noting that it is not the first time HSBC is tightening crypto-related rules. In August 2021, HSBC banned payment via credit card to cryptocurrency exchange Binance. At that time, the company claimed it had several concerns about Binance’s regulatory status in the United Kingdom.
In recent months, the authorities in the United Kingdom continued to impose stricter crypto regulations. In February, the FCA revealed plans to tighten crypto advertising rules.
Furthermore, the financial authority has partnered with West Yorkshire Police’s Digital Intelligence and Investigation Unit to gather evidence and investigate several sites around Leeds “suspected of hosting illegally operated crypto ATMs.” Based on FCA, crypto ATM operators should receive FCA registration and comply with the UK’s Money Laundering Regulations before launching their services in the UK.