HSBC and Nationwide allegedly banned users from purchasing crypto assets via credit cards.

HSBC, Nationwide Building Society and other banking giants in the UK are reportedly implementing a new set of restrictive rules aimed at buying cryptocurrencies.

The move comes amid a tumultuous year for the crypto industry, which has seen the failure of several industry giants.

as always

According to Bloomberg, HSBC, the UK’s largest banking institution, has banned customers from purchasing cryptocurrencies through credit cards, citing “possible risks.”​

Nationwide, another leading British bank, has implemented the same restrictions, placing a daily limit of £5,000 (nearly $6,000) on the purchase of digital assets using a debit card.​

Lloyds Banking Group Plc, Banco Santander SA and Natwest Group Plc have already announced such rules. For example, Santander customers have a limit of £1,000 ($1,200) per transaction and a total limit of £3,000 ($3,600) in any consecutive 30-day period.​

The stricter stance on digital assets comes in response to multiple crashes in 2022 that resulted in billions of dollars in losses. The collapse of Terra/LUNA in May was the first major blow, followed by the bankruptcies of Three Arrows Capital (3AC) and Celsius Network.

The collapse of FTX, once one of the major cryptocurrency exchanges worth $32 billion, in November was undoubtedly one of the most tragic events for the industry. It washed away the investments of more than 1 million creditors, as some of the biggest names exposed to the platform include Apple, Amazon, Google, Netflix, American Airlines, Deutsche Bank, Marriott International, and more.​

Government entities in the United Arab Emirates (UAE), Japan, Australia, Hong Kong and the central banks of Cyprus and the Bahamas were also burned.

Furthermore, the collapse of FTX triggered a massive domino effect that negatively impacted the operations of many companies. Genesis, BlockFi, and Midas Investments recently filed for bankruptcy protection.

multi-line attack

The UK government announced last month its intention to impose regulations on the local crypto industry to prevent another adverse incident from happening again.

The proposed rules will not stop technological development and are intended to ensure maximum safety for investors.

Andrew Griffith, Economic Secretary at the Treasury, said, “We remain steadfast in our commitment to growing the economy and enabling technological change and innovation – and this includes crypto-asset technology. But we must also protect those who embrace this new Consumers of technology – ensuring robust, transparent and fair standards.”