New limitations on buying cryptocurrencies in the U.K. have been put in place by the banks HSBC Holdings and Nationwide National Building Society.
According to a Bloomberg report, “Both banks pointed to warnings issued by the Financial Conduct Authority, which has labeled crypto as high risk for several years.”
Nationwide credit cards will no longer be accepted for cryptocurrency transactions. It is also reportedly imposing daily limitations of 5,000 British pounds ($5,965) on debit-card purchases of cryptocurrency assets.
“We will not allow payments to crypto exchanges using a Nationwide credit card … Neither you nor any additional card older will be able to use a Nationwide credit card to purchase cryptocurrency,” stated in an email.
Last month, HSBC customers were prohibited from using their credit cards to buy cryptocurrency. “From 23 February 2023, we’ll no longer allow cryptocurrency purchases using our credit cards,” HSBC noted in emails sent to its users.
“If something goes wrong, it’s unlikely you’ll be protected by the Financial Ombudsman Service or the Financial Services Compensation Scheme,” HSBC added regarding risks involved in crypto.
Santander, Natwest Group, and Lloyds Banking Group are other U.K. banks that have crypto service limitations. Crypto-friendly banks are facing immense scrutiny worldwide in the after-effect of multiple collapses that happened in the crypto sector for a year.
Also Read: Tether Looks Away from Silvergate Bank
Recently, FCA charged unregistered crypto ATMs around Leeds city. Operators of Crypto ATMs in the U.K. must be registered with the FCA and adhere to the U.K. Money Laundering Regulations.
