British banks HSBC and Nationwide have implemented new restrictions on the buying of cryptocurrencies in the UK. The Financial Conduct Authority (FCA), a British regulator of the financial services industry, issued a warning about the risks of purchasing cryptocurrencies, which the two banking institutions emphasized.
The Nationwide Building Society, a British banking institution, allegedly alerted its customers of the restrictions on cryptocurrency transactions on Thursday by e-mail. The Financial Conduct Authority (FCA), which regulates the financial services industry, has drawn attention to a few risks associated with purchasing cryptocurrencies, according to a leaked e-mail from Nationwide that was widely shared on Twitter. “We will be putting limits on acquiring cryptocurrency starting February 28,” the e-mail allegedly stated.
Nationwide’s e-mail was Precise
Two days after the crypto limitations went into effect, Nationwide allegedly issued the following e-mail with more information: “It willnot bepossible to pay for bitcoin trades using a Nationwide credit card. With a Nationwide credit card, neither you nor any additional cardholders will be able to purchase cryptocurrencies.”
Also, for Flexone accounts, the new daily card limit is set at 100 British pounds, and 5,000 pounds for all other accounts. The e-mail also states that restrictions on card payments made from current accounts to crypto exchanges would be put in place.
British Banks HSBC also Sent an e-mail to its Clients
Last week, a number of individuals on Twitter shared an e-mail from HSBC, one ofthe biggest banksin the world. It wasabout conductingtransactions using cryptocurrencies. HSBC wrote in the e-mail:
“Due to the possible danger to you, we won’t allow cryptocurrency transactions using our credit cards starting on February 23, 2023. As crypto assets are viewed as speculative investments with a very high level of risk, the Financial Conduct Authority (FCA) has cautioned against buying them. If something goes wrong, it’s unlikely that the Financial Ombudsman Service or the Financial Services Compensation Scheme would be able to protect you.”