UK’s Largest Bank Bans Customers From Purchasing Crypto with Credit Cards

Joshua Ramos

Bloomberg reported the UK’s largest bank, HSBC Holdings, has banned customers from purchasing crypto with their credit cards. Additionally, Nationwide has implemented a similar ban, as both entities have issued the reaction to current regulatory concerns within the digital asset industry.

HSBC has barred customers from making cryptocurrency purchases. Alternatively, Nationwide is imposing a £5,000 daily limit on cryptocurrency purchased with a debit card. Moreover, Bloomberg notes that action arrives “after industry scandals and regulatory warnings.”

UK Banks Impose Crypto Restrictions

The last few weeks have seen regulation ramp up, specifically in the United States. As the US Securities and Exchange Commission (SEC) has orchestrated a greater effort in regulatory enforcement, the industry is attempting to find a clearer way through in terms of policing the growing digital asset industry.

Now, English banks are starting to react to certain regulatory concerns in the industry. Specifically, the UK’s largest bank, HSBC Holdings bans customers from purchasing crypto with their credit cards.

Source: PYMNTS

Additionally, Nationwide has joined HSBC in crypto restrictions. Specifically, through the implementation of a £5,000 daily limit on crypto asset purchases with a debit card. Alternatively, their credit cards are no longer able to be used to purchase crypto. Conversely, HSBC has enacted a ban on all crypto purchases using a credit card.

“This is because of the possible risk to customers,” HSBC said in an emailed statement according to Bloomberg. Moreover, both banks have indicated that the decision to bar customer purchases of crypto is specifically due to “regulators’ warnings” regarding the industry.