According to recent local reports, banks such as HSBC have already introduced measures that prevent transfers from cryptocurrency exchanges to their accounts, effectively preventing speculators from cashing out any gains. The world’s sixth-largest bank and one of the largest by customer numbers in the U.K., the decision from HSBC is likely to pose significant challenges for cryptocurrency investors and users in the country, now unable to freely access funds through their HSBC bank accounts.
U.K. residents report difficulties with fiat to digital currency exchange.
HSBC bank has joined other banks and institutions that have prohibited deposits to digital currency exchanges or digital currency purchases via debit and credit cards. As a result, U.K. residents are already reporting difficulties with fiat to a cryptocurrency exchange and vice versa. The development is in keeping with the U.K.’s emerging reputation as a strict jurisdiction for crypto users. It follows from a ban on crypto derivatives trading announced back in October 2020 and comes fresh off new warnings from the FCA about the impact of crypto-related scams in the country.
The crypto derivatives ban is now in effect.
The move is expected to push HSBC customers towards new startup banks, which invariably have a friendlier approach to digital currencies and digital assets. Some investors are also relying on decentralized finance and stablecoins or simply spending their digital currencies without converting to fiat in order to get around the new restrictions. Nevertheless, the country’s leading banks’ decision is set to make it even more difficult for individuals to access, spend, and convert cryptocurrency within the U.K. The ban on crypto derivatives sale is now in effect in the United Kingdom.