By Hassan Mehmood (Saudi Arabia)
Turkey has recently joined the list of countries that have banned cryptocurrencies. Another country that has been working towards the same goal is the United Kingdom. A few days ago, Investment bank HSBC introduced a restricting ban on the users that were dealing in MicroStrategy stock. The account holders of the bank had already been prohibited from investing their money into cryptocurrencies.
Now another bank, NatWest, has introduced similar restrictions for their corporate clients. Morten Friis, head of the bank’s risk committee, told in an interview with the Guardian about the stern stance of the bank towards digital assets. He made it clear that the bank has “no appetite” to serve the clients working with cryptocurrencies directly or indirectly.
The Grip of the Government Getting Constricted on the Crypto Institutions
At the outset, it seems that a few individual private banks are planning to introduce precincts around cryptocurrencies and DeFi in the United Kingdom. However, a few days ago, the FCA has mandated all the crypto firms to regularly submit fintech crime reports. The Financial Conduct Authority (FCA) is a regulatory body in the UK that operates independently from the government.
Also read:Meanwhile, the HSBC crackdown on MicroStrategy continues despite the visible opposition of its clients and the crypto community at large. MicroStrategy has been aggressively increasing its Bitcoin holdings since last year and owns $5 billion worth of Bitcoin holdings. The business intelligence institution HSBC has declared that MicroStrategy has transformed into a virtual currency product due to the presence of massive Bitcoin reserves in its balance sheet.
Retail Banking Giant in the United Kingdom Announces Scrutiny of Crypto Account Holders
The National Westminster Bank, also known as NatWest, is not stopping at banning its users from buying into any more digital assets only. Friis told media that the bank would also start monitoring the account holders’ activities dealing in cryptocurrencies more closely. This amendment is in line with the FCA orders for fintech corporations to submit financial crime reports. Friis explained that these increased security gates are imposed to minimize the probability of money laundering and suspicious financial activities.
Similarly, HSBC InvestDirect account holders who have already purchased MicroStrategy stock before the backlisting were told that they would no longer be able to add any more MSTR on the platform. However, the customers are free to hold or sell out their holdings for the time being. Some analysts are implying that these recent moves might have significant implications for corporate clients like Tesla and WeWork that have started to accept cryptocurrencies as payment from this year.
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