HSBC Blocks Transactions From Crypto Exchanges

Crypto traders and investors in the UK will no longer be able to transfer their funds from digital asset exchanges to HSBC banks.

As Bitcoin cools from its recent highs, HSBC has become the latest banking giant to limit what its customers can invest by preventing them from transferring any profits from crypto exchanges to their bank accounts.

According to a recent report in The Sunday Times, HSBC has blocked transactions to or from the cryptocurrency exchange Bitcoin and its partners. A number of UK banks have also taken steps to prevent their customers from buying crypto assets using their debit or credit cards.

The UK is considered one of the more anti-crypto countries, next to the US, as its financial institutions and regulators increasingly seek to cripple the crypto industry.

More Duplicate Banking

CNBC host and founder of Onchain Capital, Ran Neuner, pointed out that customers will ultimately make the choice to bank elsewhere when faced with draconian restrictions on what they can and cannot do with their own money;

Jason Yanowitz of Block Works Group added;

“The old financial institutions will do everything in their power to stop this movement. They have completely denied their customers access to the best performing assets of the last decade. ”

Banks have traditionally strongly opposed decentralized digital currencies because the concept is a direct threat to their profit margins. Banks make money off other people’s money and were the main catalyst for Satoshi Nakamoto to spawn Bitcoin over a decade ago.

It is unclear what HSBC is trying to silence or prevent as their own involvement in the global money laundering racket is well documented.

In September 2022, HSBC shares plummeted after leaked documents from the US Financial Crimes Enforcement Network (FinCEN), involving some $2 trillion in transactions revealing how the bank, among other things, had allowed criminals to move dirty money around the world.

HSBC Fined For Money Laundering

The document reveals that HSBC allowed fraudsters to transfer millions of dollars worldwide even after learning of the Chinese Ponzi scam, and now they are worried about their customers trading Bitcoin.

According to the BBC, the files show investment fraud began soon after the bank was fined a record $1.9 billion in the US for money laundering.

Other major banks including JP Morgan Chase, Barclays Bank, Deutsche Bank and Standard Chartered were also involved in the dodgy transactions according to the leaked documents.

Blocking transactions related to crypto trading is just the latest banking hypocrisy that customers have to face. Fortunately, there are many alternatives available.

Leave a Comment