- This is their response to risk warnings from regulators.
- As well as insurance against the backdrop of problems with Silvergate bank
The two largest British banks introduce limits on the purchase of cryptocurrencies – Bloomberg writes. We are talking about the brands Nationwide and HSBC.
So, Nationwide has set a limit on the purchase of cryptocurrencies through a debit card – transactions are limited to 5,000 pounds sterling ($6,000). And HSBC bank blocked the purchase of cryptocurrencies through credit cards. This can only be done by debit card holders.
Both banks in their statement indicate the same reasons for the introduction of limits. These are recent risk warnings from the UK regulator (FCA).
Previously, similar restrictions were introduced by other banks and organizations – Banco Santander SA, Lloyds Banking Group Plc and Natwest Group Plc. Also, many large banks reject transactions with specific exchanges. The Binance platform is the most blocked.
An important fear factor was the financial problems of the American bank Silvergate. This company provides important financial services. In particular, it is a payment network for transfers on many crypto exchanges. Last year, the collapse of FTX forced many Silvergate clients to withdraw funds. Therefore, the company was one step away from bankruptcy.
Recently, Silvergate announced that it would not be able to file its accounts with the SEC on time. This further fueled rumors of an impending crash. In response, MicroStrategy, Tether and a number of other companies severed their relationship with Silvergate.