Building society Nationwide is the latest banking entity to restrict customers’ ability to buy cryptocurrency in the UK, as it bans the use of a credit card to buy crypto and sets a $6,000 limit to any daily crypto purchases.
Nationwide works similar to a credit union in the US. As reported by Reuters, it set the £5,000 limit and credit card ban in response to growing regulatory concerns over the risks of buying crypto.
UK banks are changing crypto policy, too:
- Along with Nationwide, HSBC, Santander, Barclays, and Natwest all blocked card payments to Binance following financial regulator uncertainty towards the exchange.
- Santander limited payments to crypto exchanges at £1,000 per transaction and £3,000 for every 30 days.
- Online bank Starling banned all transactions towards crypto exchanges, while online banks Revolut and Monzo still maintain an open stance toward crypto.
Only last Monday, UK banking regulators announced proposals for new rules centered on the holding and issuing of crypto. Around the same time, a freedom of information (FOI) request revealed some UK crypto investors lost nearly $2.3 million following the collapse of Sam Bankman-Fried’s FTX empire.
Simon Jones, founder and chief exec of Investing Reviews, submitted the request. Jones warned that the reported losses are likely to be just “the tip of the iceberg.”