Japan Architectural Institute and HSBC Holdings plc HSBC Following industry scandals and regulatory warnings, we have implemented new restrictions on retail customer access to crypto assets.
what happened: The Nationwide Building Society announced Thursday that it will impose a £5,000 ($5,965) daily limit on debit card purchases of crypto assets and will not allow the use of credit cards to purchase cryptocurrencies.
HSBC Holdings has banned customers from buying cryptocurrencies via credit cards since last month.
HSBC said in an email to Bloomberg: “This is a potential risk to our customers.
Both banks cited warnings issued by the Financial Conduct Authority (FCA), which for several years considered cryptocurrencies risky.
FCA warning prompts several UK banks to introduce crypto-specific restrictions for customers Banco Santander SA, Lloyds Banking Group Plc LYG and NatWest Group Plc NWG among them.
Most major banks also implement exchange-specific limits. Binance Holdings Co., Ltd. BNB/USD The most popular target.
Also Read: FTX Faces Massive Asset Shortage of $2.2 Billion in Wallets Associated with FTX.com, FTX.US Exchange
Important reasons: Collapse of virtual currency exchanges FTX FTT/USD Further concerns about cryptocurrency risks were raised in November.
International bodies such as the Financial Stability Board, the International Monetary Fund, and the Financial Action Task Force have repeatedly warned banks about the potential risks that cryptocurrency assets pose to the traditional financial system.
US banks with close ties to the crypto sector are also facing increased scrutiny.
Silvergate Capital Corporation SIa crypto-friendly bank, fell to a record low on Thursday after saying it was considering whether it was viable.
Regulators, including the Federal Reserve Board, have asked financial institutions to be aware of the “potentially increased liquidity risk” posed by certain sources of funds from crypto-related entities.
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