HSBC blocks cryptocurrency transfers
HSBC has banned transfers between cryptocurrency exchanges and bank accounts in the UK
HSBC Bank, one of the largest financial institutions in the UK, has banned operations related to the circulation of cryptocurrencies.
According to The Sunday Times, clients of the British bank will no longer be able to transfer any profits from cryptocurrency transactions into their bank accounts.
Beyond banning transfers, HSBC also no longer allows users to buy Bitcoin or other cryptocurrencies with their debit/credit cards. This effectively cuts the links between cryptocurrency exchange platforms and HSBC's services. Other UK banks have also made this choice but are not named in the article.
The news shows the substantial barriers that still exist in the UK, in terms of access to cryptocurrency. The country’s regulators and financial institutions still widely consider Bitcoin and other altcoins being used to finance an illicit market or to launder money.
Yesterday, the Financial Conduct Authority (FCA) warned investors that they should be prepared to lose “all their money” if they choose to invest in cryptocurrency products offering high returns.
And in October, the UK FCA banned Bitcoin-based derivatives. The Bank of England has also repeatedly shown its hostility to cryptocurrencies.
Ran Neuner, host of Crypto Trader at CNBC, tweeted commenting on HSBC's decision to ban cryptocurrency-related operations by saying that if several banks ban cryptocurrency trading on the platform, they will stop doing business.
Meanwhile, Danny Scott, CEO of cryptocurrency exchange CoinCorner, said the exchange and its clients had not had any difficulties with banks in liquidating their crypto assets recently. He added that as long as the source of funding is clear, the bank will not make a problem.
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