HSBC Limits UK Customers in Purchasing Crypto With Credit Cards

Customers are Banned From Purchasing Crypto With Credit Cards by HSBC
The SEC has organized a bigger regulatory enforcement effort.
HSBC Holdings forbids consumers from buying cryptocurrency with credit cards.

According to a recent report, UK banks have restricted cryptocurrencies as Nationwide Bank imposes daily restrictions of £5,000 since its credit cards can no longer be used to purchase crypto on debit-card transactions of digital assets. HSBC claimed that it prohibited clients from using its services.

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In the last week, Nationwide Building Society and HSBC Holdings Plc tightened restrictions on retail consumers’ access to crypto assets, becoming the first UK institutions to do so in response to industry scandals and regulatory concerns.

In addition, Customers of Nationwide were warned on Wednesday that there will be daily limitations of £5,000 ($5,965) on transactions made with debit cards for crypto assets. In contrast, purchases made with credit cards will no longer be possible. Since last month, according to HSBC, clients were not allowed to buy cryptocurrency using their credit cards.

Notably, Regulation has increased recently, particularly in the United States. The US Securities and Exchange Commission (SEC) has organized a bigger regulatory enforcement effort. The sector is trying to figure out a clearer path forward in monitoring the expanding digital asset industry.

However, English banks are now beginning to respond to regulatory worries in the sector. The biggest bank in the UK, HSBC Holdings, specifically forbids consumers from buying cryptocurrency with credit cards.

Nationwide has also joined HSBC in specifically imposing crypto restrictions by imposing a £5,000 daily cap on purchases of crypto assets using debit cards. Alternatively, they can no longer buy cryptocurrency using their credit cards. On the other hand, HSBC has outlawed all credit card purchases of cryptocurrency.

This is due to the potential risk to clients, according to a statement from HSBC sent through email. Furthermore, according to both banks, the decision to forbid consumer purchases of cryptocurrencies was made especially in response to “regulators’ concerns” about the sector.

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Godfrey Mwirigi

Godfrey Mwirigi is an enthusiastic crypto writer with an interest in Bitcoin, blockchain, and technical analysis. With a focus on daily market analysis, his research helps traders and investors alike. His particular interest in digital wallets and blockchain aids his audience in their day-to-day endeavors.