A Sunday Times report confirms that some UK banking institutions have decided to apply new restrictive measures to users of bitcoin and other cryptocurrencies. According to the report, British investors will face problems in working with British banks.
HSBC and other unspecified banks will no longer accept transfers from bitcoin exchange platforms. The bank will also not allow Bitcoin, Ethereum or other cryptocurrency-related deposits from a crypto portfolio in their bank accounts.
In addition to the above, investors will not be able to use their debit or credit cards to purchase cryptocurrencies.
Tighter measures against Bitcoin
According to CNF, the United Kingdom is one of the most hostile countries to the crypto industry, mainly for retail investors. In early October 2020, the United Kingdom banned trading in BTC-based financial derivatives and any other cryptocurrency, as decided by the Financial Conduct Authority (FCA).
The regulator claims to be “protecting investors’ money” in the UK. He therefore considers cryptocurrencies such as BTC to be untrustworthy. In addition, the FCA believes that the bitcoin derivatives market is prone to financial crime.
As the UK regulator, the US Treasury considers cryptocurrencies to be assets used for illegal activities. In this sense, the Financial Crimes Network (FinCEN) has proposed a new regulation against the so-called “unhosts” of Bitcoin.
The proposed rule has been rejected by the entire crypto industry and the big players believe it will create more complications for users and few benefits. They commented that “Burdensome and impractical requirements under this proposed rule may stop important achievements and innovations emerging in crypto at the moment.”