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Hong Kong and the Shanghai banking company (hsbc) and the national construction company, on Thursday, became the last financial institution in the United Kingdom to restrict cryptography. Both banks officially prohibit all crypto purchases by clients using credit cards, with the reduction of debit card transaction limits involving crypto to 5000.
This follows a recent announcement by the United Kingdom's Financial Conduct Authority (FCA) to normalize its digital asset industry, in particular with respect to the use of cryptocurrencies that it designates as "high risk.”
“Crypto asset business marketing to UK customers, including firms based overseas, must get ready for this regime.” - FCA made the point.
Other resolutions in the 82-page guidance issued on Wednesday include a new evaluation requirement for all crypto firms and a mandatory 24/7 document update. Crypto will not obtain a new regulator in the United Kingdom and will be entirely regulated by the Financial and Market Services Act (2000). Her Majesty's treasury requires that cryptography and the traditional financial industry operate on an equal footing.
Already banks such as barclays, natwest, santander, and lloyds have implemented some form of restriction or other to crypto as a result of the decision. Previous limitations applied by banks, including HSBC, BINANCE was the primary target, who has disagreed with the United Kingdom regulator since June on what CFA calls "poor client protection".
Following The FTX's downfall, which led to an effect of contagion beyond cryptography, Banks in the United Kingdom are taking preventative measures to protect their customers against threatening exposure levels, affecting their books.
Silvergate Bank, based in the United States, became an example of a side effect of a creeping exposure this week after announcing that it highly regards the ability to continue its operations as a business that is active. Over the past two years, silvergate has become the preferred crypto front door to financial institutions.
Sam Bankman Fried, the founder of FTX, had a private account at Silvergate, possibly involving him in ongoing investigations into money laundering. Its digital asset treasury of $14.1 billion has since been reduced to less than $400 million, as clients have defrauded to mitigate losses on the Hill from the FTX meltdown.
Nevertheless, some crypto users believe that the complete breakdown of integration links may stifle innovation around space, which has grown into a trillion-dollar market over the past decade.
