Specifically, HSBC and other unnamed UK banks will not agree transfers from cryptocurrency exchanges. Furthermore, HSBC will ot permit Bitcoin (BTC), Ether (ETH), or other altcoin-linked deposit or even deposits associated with a crypto wallet in their customers bank accounts.
Notably, investors will not be allowed to use their debit or credit cards for the purchase of cryptos. Regarding the restrictions, Ran Neuner, cryptocurrency trader and host of CNBC’s “Crypto Trader” program, opined as follows:
Many banks will put themselves out of business like this. pic.twitter.com/7JvRT777qT
— Ran Neuner (@cryptomanran) January 9, 2021
In general, crypto community perceives the UK as one of the countries posing unfriendly attitude towards the crypto sector, mainly with respect to retail investors. Back in October last year, the UK issued a ban on trading in derivative products based on Bitcoin and other cryptos on the basis of a decisionn by the Financial Conduct Authority (FCA).
The market watch dog justifies its decision by stating that it is safeguarding investors in the UK as it regards cryptos, including Bitcoin, as unworthy. Furthermore, the FCA regards Bitcoin derivatives market as illegal and “abusive” and susceptible to financial fraud.
Similar to the FCA, the US Treasury Department regards cryptos as assets that can be used for unlawful conducts. On that basis, the the Financial Crimes Enforcement Network (FinCEN) has suggested fresh regulation to govern self-managed “unhosted” wallets used for storing Bitcoins.
The suggested law was totally turned down by the crypto community in totality. Prominent players in the industry feel that it will pave way for further issues to users and offers little advantages. Only two days before, the time period allotted by the FinCEN for receiving public opinion on the issue ended.
The institution has to study the opinion before making it a law. The Digital Currency Group said the following about the standard:
3/ The burdensome and impractical requirements under this proposed rule could halt the important advancements and innovation occurring in crypto right now. We respectfully request that FinCen provide additional time for comment and input before finalizing this rule.
— Digital Currency Group (@DCGco) January 6, 2021