Cryptoassets are not accessible to retail clients at HSBC and Nationwide Building

According to Trade Algo, UK banks Nationwide Building Society and HSBC Holdings have restricted retail clients' access to crypto assets during the past week, citing a warning from The Financial Conduct Authority (FCA).

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The businesses have stopped using credit cards for bitcoin purchases and put restrictions on purchases made with debit cards.

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The action is a reaction to controversies and warnings issued by UK regulators about the crypto business. Cryptocurrencies are significant risk, according to British regulator Financial Conduct Authority.

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Credit cards are not allowed to be used for cryptocurrency transactions, and there are daily limits of £5,000 ($5,965) on debit card purchases of cryptocurrency assets.

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Last month, HSBC stopped allowing clients to use their credit cards to buy cryptocurrency.

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Trade Algo cited HSBC as saying in an email statement: "This is due to the potential danger to clients."

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Banco Santander, Lloyds Banking Group, and NatWest Group are just a few of the organizations that have recently put crypto-specific restrictions on their UK customers.

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The majority of the exchange-specific limitations are directed at Binance Holdings, the biggest cryptocurrency platform in the world.

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HSBC prohibited credit card payments to Binance's cryptocurrency platform in 2021 due to the exchange's local regulatory status.

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The governing board proposed regulations in February 2023 that stipulated specific financial promotion-related requirements for bitcoin businesses marketing to UK customers.

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"Cryptoasset enterprises marketing to UK consumers, including firms operating overseas, must prepare ready for this regime," the FCA stated in a statement.