Leading UK Banks Block Crypto Purchases – Find Out What to Expect
• Several major banks in the UK, including HSBC and Nationwide Building Society, have reportedly implemented restrictions on purchasing cryptocurrency via credit cards.
• The move comes after numerous collapses in 2022 leading to multi-billion losses.
• Banks are imposing limits on crypto purchases using debit or credit cards to prevent potential risks.
Leading UK Banks Impose Restrictions on Crypto Purchases
Several top banking institutions in the United Kingdom, including HSBC and Nationwide Building Society, have reportedly imposed new rules restricting customers from buying cryptocurrency via credit cards. This is done due to the chaotic year for the crypto industry, which witnessed several industry giants failing and causing multi-billion losses.
HSBC Bans Credit Card Purchases of Crypto Assets
HSBC, the biggest banking institution in the United Kingdom has banned its customers from buying cryptocurrencies through their credit cards due to possible risks involved with such transactions. Similarly, Nationwide has also restricted crypto purchases by setting a daily limit of £5,000 (nearly $6,000) for debit-card transactions of digital assets.
Other Banking Institutions Implement Restrictive Rules
Other large British banks such as Lloyds Banking Group Plc, Banco Santander SA and Natwest Group Plc have also announced restrictive rules on crypto purchases using debit or credit cards. For example, Santander’s customers are allowed a maximum purchase of £1,000 ($1,200) per transaction and a total limitation of £3,000 ($3,600) in any rolling 30-day period.
The Background Behind These Restrictions
The stricter stance taken by these banking institutions is a direct response to the numerous collapses that occurred in 2022 resulting in immense losses. Some notable examples include Terra/LUNA crash in May followed by Three Arrows Capital (3AC) and Celsius Network bankruptcies as well as FTX collapse – an exchange previously valued at $32 billion – in November 2020.
It appears that leading banks in the UK are taking necessary steps to protect their customers from potential risks associated with cryptocurrency investments by implementing restrictive rules and transaction limits when it comes to purchasing digital assets with debit or credit cards.