HSBC has blocked transactions to or from crypto exchanges as it takes a heavy-handed approach to Bitcoin and its brethren, according to a recent report in The Sunday Times. Some of U.K. banks have also made moves to prevent their customers from buying crypto assets using their debit or credit cards.
According to Cryptopotato, the U.K. is regarded as one of the more anti-crypto nations, alongside the U.S., as its financial institutions and regulators have progressively strived to stifle the industry.
CNBC host and Onchain Capital founder, Ran Neuner, noted that customers will eventually make the choice to bank elsewhere when faced with draconian restrictions on what they can and can’t do with their own money.
Jason Yanowitz from Block Works Group added;
“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.”
Banks have traditionally been vehemently against decentralized digital currencies as the concept is a direct threat to their profit margins. Banks make money from other people’s money and were the primary catalyst for Satoshi Nakamoto to spawn Bitcoin just over a decade ago.
In 2020, HSBC shared plummeted after leaked documents from the U.S. Financial Crimes Enforcement Network (FinCEN), involving about $2 trillion in transactions revealed how the bank, among others, has allowed criminals to move dirty money across the world.
The documents showed that HSBC allowed fraudsters to transfer millions of dollars throughout the world even after it had learned of the Chinese Ponzi scam, and now it is worried about its customers trading Bitcoin.
According to the BBC, the files showed the investment scam started right after the bank was fined a record $1.9 billion in the U.S. over money laundering.
Other major banks including JP Morgan Chase, Barclays Bank, Deutsche Bank, and Standard Chartered were also implicated in dodgy dealings according to the leaked documents.