Britain’s Mortgage Lender Nationwide Building Society and HSBC Holdings have imposed some restrictions on card payments linked to cryptocurrencies.
According to Nationwide’s website, the U.K.-based savings provider has limited the amount members can spend on crypto purchases on digital asset trading platforms using its debit cards. The restrictions also extend to digital wallets such as Apple Pay and Google Wallet.
Nationwide Limits Adult Accounts to £5,000
The limitation, however, is dependent on the type of account operated. Customers with an adult current account can spend up to £5,000 daily, while those with a FlexOne account can spend around £100 daily.
Other account types, such as FlexStudent, FlexGraduate, FlexBasic, FlexAccount, FlexDirect, and FlexPlus, are also required to observe the restrictions.
While the bank has limited users’ spending limits on debit cards, Nationwide has completely banned using credit cards to make crypto payments.
HSBC, on the other hand, said it banned customers from making crypto purchases through its credit cards on exchanges last month, citing potential risks to consumers.
According to a Bloomberg report, the two financial institutions said the move was in response to regulatory concerns issued by the Financial Conduct Authority (FCA) over the risks associated with trading cryptocurrencies.
Nationwide Bans Customers From Using Binance
In an earlier update on Nationwide’s webpage, the financial institution discontinued card payments on the crypto exchange Binance. However, users can still withdraw their assets from the company through their Nationwide accounts.
The bank explained that the move follows similar actions from other providers, media coverage, and regulatory uncertainty. According to a tweet published in 2021, the decision to suspend card payments on Binance comes after the FCA disclosed that the exchange was not allowed to participate in any regulated activity in the United Kingdom.
The exchange is facing severe scrutiny by the United States authorities for possibly violating U.S. federal laws and suspected money laundering activities.
Not the First
With a lack of regulatory clarity hovering over the industry, some financial institutions in Britain, such as Santander, have also introduced limits on the amount customers can spend on crypto.
The bank plans to permanently stop allowing customers to make crypto transactions on exchanges using their accounts.
Another bank, Natwest Group (NWG.L), imposed similar restrictions on crypto spending in 2021. Like Nationwide, the bank aims to protect customers’ interests and funds from bad players.
