UK’s Financial Watchdog Issues a Crypto Warning; HSBC & Other UK Banks Blocking Transfers
A standard investment disclaimer — be prepared to lose all your money when investing in crypto.
On Monday, the UK Financial Conduct Authority warned investors to be “prepared to lose all their money” when investing in cryptocurrency-related products.
According to the regulator, while the crypto investments “promise high returns,” they come with “very high risks,” including price volatility, lack of consumer regulation, and complexity of products.
“As with all high-risk, speculative investments, consumers should make sure they understand what they’re investing in, the risks associated with investing, and any regulatory protections that apply.”
In other news, banking institutions in the UK are restricting cryptocurrency users’ access to their services. The UK has been taking an anti-crypto approach, recently its ban on the sale of crypto derivatives and exchange-traded notes (ETNs) came into effect on Jan. 6.
As per a Sunday Times report, HSBC and other unmentioned banks are not processing cryptocurrency payments. They might not allow them to make transfers between bank accounts and digital wallets or even let their customers use credit cards to buy or sell BTC.
As we saw in 2020, the likes of JPMorgan, Morgan Stanley, Deutsche, and Citi, among others, have been warming up to Bitcoin and predicting a bullish future for cryptocurrencies.
But still, some banks like HSBC are not interested in keeping up with the new revolutions, especially those that are working on putting them out of businesses. The banks continue to be busy with money laundering and paying hefty fines.
“HSBC is now blocking transfers to and from crypto exchanges. 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,” said JasonYanowitz of Block Works Group about this decision.