HSBC started blocking transactions from crypto exchanges as traders and investors from the UK Cannot longer transfer funds from digital asset exchanges to the bank. Let’s find out more in the latest crypto news today.
As BTC cools down from its recent all-time high, HSBC became the latest banking giant that decided to restrict customers from investing by preventing them from transferring profits from crypto exchanges to their banking accounts. According to a report in the Sunday Times, HSBC Started blocking transactions to or from crypto exchanges as it takes a heavy-handed approach to BTC and other crypto assets. plenty of UK Banks also made this move to prevent their customers from purchasing crypto assets by using their debit or credit cards.
The UK is regarded as one of the anti-crypto nations alongside the US because its financial institutions and regulators strived to stifle the industry for so long. CNBC host and OnChain Capital founder, Ran Neuner pointed out to customers that they will have to make a choice to bank elsewhere when faced with these heavy measures that tell the users what they can or cannot do with their money;
“Many banks will put themselves out of business like this. pic.twitter.com/7JvRT777qT
— Ran Neuner (@cryptomanran) January 9, 2021”
Jason Yanowitz of Block Works Group added:
“Legacy financial institutions will do everything in their power to stop this movement. They’re literally denying their customers access to the greatest performing asset of the past decade.”
Banks have been most of the time against digital currencies as the concept poses a direct threat to their profit margins and banks make more money from people’s money which was the main catalyst for Satoshi to create BTC a decade ago. Back in September 2020, HSBC shares dropped after leaked documents from the US Financial Crimes Enforcement Network that involves around $2 trillion in transactions revealed how the bank among others allowed criminals to move dirty money across the world.
The documents revealed that HSBC allowed fraudsters to transfer millions of dollars around the world after they learned of a Chinese Ponzi Scheme and then worried about trading BTC. According to the BBC, the files showed that the investment scam started right after the bank was fined $1.9 billion in the US over money laundering. Other major banks like JP Morgan Chase, Deutsche Bank, Barclays Bank and Standard Chartered were implicated in these suspicious dealings according to the documents. Blocking crypto transactions is just the latest sign of hypocrisy from the banks but lucky for us, there are plenty of alternatives available.
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