British multinational investment bank HSBC has blocked the transfer of funds from crypto exchanges. Apart from HSBC, several UK banks have also moved to prevent customers from purchasing cryptocurrencies with their debit or credit cards. Recently, the investment bank was involved in a money-laundering activity that stirred up criticism from authorities.
On the 9th of January, The Sunday Times revealed in a report that HSBC barred transfers from crypto exchanges as Bitcoin surged to new highs.
According to Coinjournal, HSBC’s move may be an approach to deal with the ongoing money laundering case. The report further noted that leaked documents from the Financial Crimes Enforcement Network (FinCEN) revealed details on the alleged involvement in money laundering. As a result of the allegations, the bank was charged with a $1.9 billion fine.
Reacting to HSBC’s prohibition of digital asset-related transactions, Jason Yanowitz from Block Works Group said in a tweet:
“HSBC is now blocking transfers to and from crypto exchanges. Legacy financial institutions will do everything in their power to stop this movement. They’re literally denying their customers access to the greatest performing asset of the past decade.”
Ran Neuner, host on CNBC Crypto Trader also said that financial institutions will put themselves out of business as customers will search for alternatives to complete their transactions.
Image Credits: Pixabay
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