HSBC Bans Purchase Of Crypto Assets Using Credit Cards

HSBC prohibits buying crypto assets using credit cards. (Photo; Doc. Cryptodaily)

JAKARTA - The Nationwide Building Society and one of the largest banking groups in the London-based world, HSBC, has introduced new restrictions on the purchase of cryptocurrencies in the UK. This action was taken following warnings from the UK's financial regulator, Financial Conduct Authority (FCA), regarding risks related to the purchase of cryptocurrencies.

The Nationwide Building Society notified its customers on Thursday that it will introduce restrictions on cryptocurrency purchases starting February 28. The restrictions include payment of cards made to crypto exchanges from checking accounts and purchases with Nationwide credit cards.

The new daily card limit is 100 British (around Rp1.8 million) for Flexone accounts and 5,000 (Rp91.6 million) for other types of giro accounts. Meanwhile, HSBC has also taken an anti-crypto stance in terms of allowing customers to buy cryptocurrencies.

Last week, the bank sent an email to its customers explaining that starting February 23, it would no longer allow the purchase of cryptocurrencies using HSBC credit cards.

The reason given is the risk associated with speculative investment which is very high risk. HSBC also emphasizes that if something goes wrong, it is unlikely that customers will be protected by the Financial Ombudsman Service or the Financial Services Compensation Scheme.

This action follows similar steps taken by other UK banks, including Santander UK andtendor Banks in November last year. Despite this, HSBC recently filed trademark applications for various digital currencies and metaverse products and joined the metaverse.

This shows that although banks are taking action to limit cryptocurrency purchases, they are still seeing potential in blockchain technology and digital currencies.