HSBC bank has reportedly changed its crypto-currency policy. The bank now prohibits its customers from buying shares in publicly traded companies that own bitcoins, such as. B. Microstrategy. All companies with bitcoin treasuries could be on the block with HSBC.
HSBC now prohibits customers from buying crypto and cryptocurrencies like Microstrategy
British bank HSBC has reportedly become stricter in its policy towards crypto currency. The bank now prohibits its customers from buying shares in publicly traded companies that have bitcoins in their box.
An HSBC customer shared a message he received from the bank announcing a policy change regarding cryptocurrencies, citing Bitcoin and Ethereum as examples. The Bank’s new policy applies to products related to or using virtual currencies. The message reads as follows:
HIDC [HSBC Invest Direct] will not engage in the promotion (purchase and/or exchange) of products related to virtual currencies or products related to or referencing the operation of virtual currencies.
The communication highlights a particular action. Our records show that your HSBC Invest Direct account contains Microstrategy Inc-A – MSTR-US, a virtual currency product.
Although Microstrategy does not offer cryptocurrency services, it has been actively buying BTC since October last year. The company has collected nearly 100,000 of them. BTC and has made the acquisition of cryptocurrencies one of its main goals.
HSBC’s message continues:
While we allow you to hold and/or sell/transfer US MSTR investments to your HSBC Invest Direct account, new purchases or transfers to your account are not permitted.
Note posted by HSBC on Twitter @camadamus. Source: @camadamus
The British bank has not specified how many bitcoins a company must own to have its shares banned by the bank. Microstrategy announced that it would hold 100% of its financial reserves in BTC.
The rapidly growing list of companies indicates that they invest in bitcoin, but usually at a lower rate than Microstrategy. That includes Elon Musk’s Tesla, which invested $1.5 billion in January. Square Inc, owned by Jack Dorsey, also invests 5% of its total cash reserves in bitcoin. The site bitcointreasuries.org has a growing list of companies that hold bitcoins.
A Twitter user pointed out that HSBC Canada likely arbitrarily determines what percentage of bitcoin reserves customers can invest in.
An HSBC customer who received the message sent a message to Microstrategy CEO Michael Saylor on Twitter: You might want to ask your legal team if what HSBC Canada is doing here is legal. That’s what it looks like. They won’t let us buy Microstrategy. Referring to all companies with investments in bitcoin, he further expressed his opinion: All of these companies may be on the block because they own BTC. This is the opposite of a free market.
What do you think of HSBC’s new crypto currency policy? Let us know your comments in the section below.
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