• U.K. banking giants, such as Nationwide and HSBC, are limiting their customers’ cryptocurrency purchases via debit cards and ending purchases with credit cards.
• Most of the major banks have also implemented exchange-specific restrictions, targeting the world’s largest crypto platform Binance Holdings Ltd.
• NatWest Group CEO Alison Rose cites instability, volatility and risk of fraud from social media and technology platforms as primary reasons for the bank’s “hard line” on cryptocurrency.
U.K. Banks Crack Down on Cryptocurrency Purchases
British banks have continued to crack down on their customers’ cryptocurrency purchases by placing new limits on their customer’s ability to purchase cryptocurrencies.
Nationwide & HSBC Impose Limits
According to a Bloomberg report, Nationwide and HSBC are the latest U.K. banking giants to impose new limits on their customer’s cryptocurrency purchases via debit cards and end purchases with credit cards.
“Nationwide is applying daily limits of £5,000 ($5,965) on debit-card purchases of cryptoassets, the building society informed customers on Wednesday, while its credit cards can no longer be used to buy crypto. HSBC said it barred customers from making crypto purchases via its credit cards from last month,” reads the report.
HSBC Cites Financial Risk
HSBC states that the decision is due to alleged financial risk to customers. The report describes how “Most of the major [U.K.] banks have also implemented exchange-specific restrictions, with the world’s largest crypto platform Binance Holdings Ltd. the most popular target.”
NatWest Group CEO Comments
Bitcoin Magazine covered the start of these moves from U.K citizens in tandem with increasing discussion of a U.K CBDC Alison Rose, CEO of NatWest Group described how the bank had taken a “pretty hard line” on cryptocurrency due to its instability and volatility coupled with an increased risk of fraud citing social media and technology platforms as primary sources.Conclusion
These new limitations places U.K citizens at further disadvantage in regards to acquiring bitcoin which highlights need for more decentralized exchanges that can facilitate no-KYC bitcoin transactions .