TL;DR Breakdown
- HSBC UK refuses to process payment from crypto exchanges
- The bank cites money laundering concerns
HSBC, one of the biggest banks in the United Kingdom, will not allow Bitcoin users to process transactions from crypto exchanges or digital wallets. This was made known by a report from The Times U.K.
This means that crypto enthusiasts who might be looking to cash in on the gains of the industry’s bull run would have to seek alternatives as HSBC and other banks would not process these payments.
Though some other major banks in the country appear prepared to accept transactions from digital wallets into current accounts, many of them, however, will bar their clients from using their credit cards to purchase crypto assets like Bitcoin.
HSBC and Barclays Bank had blocked a UK cycling merchant account because he made a transaction to a crypto exchange. The banks cited money laundering concerns as why they are reluctant to deal with crypto assets and firms.
Yet, despite their claims and concerns, a Financial Crimes Enforcement Network (FinCEN) report in September accused some of these banks of helping criminals to launder over $2 trillion. Which leads to the question of if these banks are scared of the potentials that cryptocurrency holds over them?
Banning Cryptocurrency would put banks like HSBC out of Business — Ran Neuner
Ran Neuner, the host of Crypto Trader on CNBC, in one of his recent tweets said that many banks would put themselves out of business if they bar crypto transactions on their platform. He made this statement in response to HSBC’s decision to not process crypto payments.
Meanwhile, Danny Scott, the CEO of crypto exchange platform CoinCorner, has said that some of the hostile financial institutions in Britain have begun to welcome the idea of Bitcoin.
According to Scott, his exchange and his clients have not experienced any challenges with banks in liquidating their crypto asset recently. He added that the banks would provide no issues for as long as the source of the funds remain clear.
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