UK: HSBC stops supporting cryptocurrencies
The recent tightening of regulations in the UK has led to the expected reaction from banks. HSBC has banned the deposit and withdrawal of cryptocurrencies from crypto exchanges for security reasons. Others followed him, banning the purchase of cryptos from credit cards and debit cards.
The UK and US are among the countries with active regulations. This is definitely choking the cryptocurrency industry. According to the founder of Onchain Capital, draconian restrictions on what users of the financial system can do with their money will force them to look for other ways, including just changing banks. Many banks will lose clients.
HSBC is now blocking transfers to and from crypto exchanges.— Yano (@JasonYanowitz) January 11, 2021
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.https://t.co/x2VcabfCFj
HSBC has a bad reputation in the banking environment
In 2020, the bank was fined $1.9 billion for money laundering following an information leak on the network. HSBC's transaction rates plummeted in September 2020 after reports that the bank had laundered more than $2trillion. So it’s just hypocrisy that the bank is now prohibiting its clients from working with Bitcoin.