British investors faced a dilemma after HSBC announced that it would no longer support money transfers from crypto exchanges
The Sunday Times reported on Saturday that HSBC had blocked all crypto-exchange transactions. Crypto customers can no longer transfer their winnings to their bank account.
It seems that the multinational bank is taking a persistent approach to dealing with money laundering. HSBC is now the newest bank to put restrictions on crypto customers. The bank was recently involved in global money laundering activities, which is why it has been criticized for taking this step.
Leaked files by the Financial Crimes Enforcement Network revealed the bank’s alleged involvement, which resulted in HSBC being fined a record $ 1.9 billion in money laundering fees.
The bank was also the subject of a documentary on Netflix that exposed the bank’s $ 881 million money laundering scandal. The documentary entitled “Dirty Money” also questions the measures taken against the bank.
Many crypto users from HSBC have considered that the bank itself is involved in the crime. The UK is seen primarily as an anti-crypto region, and HSBC’s move to stop processing crypto payments and sending funds to and from exchanges will hurt local investors.
Ran Neuner of Onchain Capital claimed that crypto investors need to find an alternative to capitalize on the digital assets.
answer to The Sunday Times Report, he wrote on Twitter, “Many banks will withdraw from business in this way. ”
Jason Yanowitz of the Block Works Group also shared his views, claiming that banks were trying to stifle the progress of cryptocurrencies.
“HSBC is now blocking transfers to and from crypto exchanges. Legacy financial institutions will do everything in their power to stop this movement. They literally deny their customers access to the most powerful asset of the past decade. ”
However, Yanowitz’s claims are not unfounded, as banks have traditionally been known to oppose digital assets as they pose a threat to their revenues.