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HSBC will ban UK customers from conducting cryptocurrency-related transactions

Coinbase CEO: "UK crypto users should close your HSBC account"

UK cryptocurrency policy regulation continues to tighten

HSBC Bank will prohibit UK customers from conducting cryptocurrency-related transactions

BlockBeats News, on September 26th, JPMorgan Chase UK will ban UK customers from conducting cryptocurrency-related transactions from October 16th. According to an email sent to customers: "If we believe you are making a payment related to cryptocurrency assets, we will decline the transaction." The email also added that customers are free to choose other banks or suppliers for cryptocurrency investment.

The Financial Conduct Authority (FCA) of the United Kingdom recently stated that it has facilitated discussions between banks and cryptocurrency companies, but lenders have shown reluctance to provide services to the industry.

Its ban on encrypted payments is because "fraudsters are increasingly using encrypted assets to steal large sums of money from people," and other UK banks that have implemented similar restrictions have also cited this reason.

Coinbase CEO: "UK crypto users should close your HSBC bank account"

However, some people in the community believe that it is unclear whether it is to protect users' assets or more like wanting to "control how users use their own money".

Coinbase CEO Brian Armstrong has expressed his opinion on this matter on social media, stating that JPMorgan's actions are completely "inappropriate behavior", and stating that "if UK cryptocurrency holders are treated in this way, they should close their Chase (JPMorgan) accounts."

Armstrong also mentioned British Prime Minister Rishi Sunak and Chancellor of the Exchequer Andrew Griffith, stating that JPMorgan's move does not respect the policy goals of the UK.

The reason why Armstrong is so excited is closely related to his focus on expanding the market and developing strategies.

BlockBeats reported on March 24th that the Coinbase leadership team will visit the UK in a few weeks to meet with policy makers, regulators, and the media. The meeting may involve the EU's comprehensive crypto regulatory framework, MiCA.

On April 16th, Coinbase emphasized in a blog post that the UK can "accelerate" its cryptocurrency industry and become the "innovation center of the Web3 economy". Brian Armstrong also spoke at the London Fintech Conference and proposed 9 suggestions on how the UK can "consolidate its position as the center of Web3".

Related reading: "The UK as a Web3 innovation hub".

In early September, BlockBeats reported that Coinbase plans to focus on several countries outside the United States in the short term, as the cryptocurrency laws in these countries are relatively clear, including six countries and regions such as the European Union and the United Kingdom. Coinbase stated in its blog that these countries are developing clear cryptocurrency regulations, so Coinbase will focus on obtaining licenses, registering, and establishing and strengthening its business in these places.

It can be inferred from this that Brian Armstrong expressed his confusion about the actions of JPMorgan Chase, and payment giant PayPal also withdrew from the UK cryptocurrency market earlier.

British encryption policy regulation continues to tighten

BlockBeats reported in mid-August that PayPal announced it will temporarily suspend cryptocurrency purchase services in the UK starting in October. In an email sent to some users on August 14th, PayPal stated that due to new rules introduced by the Financial Conduct Authority (FCA), it will temporarily suspend cryptocurrency purchase services in the UK from October 1, 2023, and will resume in early 2024, with no specific date yet announced.

Before this, on June 29th, the Financial Services and Markets Act (FSMA) was approved by King Charles of the United Kingdom, making it an official law. The law recognizes cryptocurrency as a regulated activity and stablecoins as a means of payment under existing legal provisions.

The bill, which will be introduced in July 2022, gives regulatory agencies greater power over the financial system, including cryptocurrencies. Although the bill is being debated in parliament, amendments have been added that treat all cryptocurrencies as regulated activities and oversee the promotion of cryptocurrencies. The bill also includes stablecoins in the scope of payment rules. The UK's Treasury, Financial Conduct Authority, Bank of England, and Payment Systems Regulator will soon be able to introduce and enforce rules to regulate the industry.

In addition to the overall encryption regulatory bill, there are more targeted encryption laws and regulations in the UK.

For example, the "Economic Crime and Corporate Transparency Act" passed by the upper house in early July allows law enforcement agencies to seize and freeze cryptocurrencies used for criminal purposes. This includes the content in the link.

August 17th, FCA introduced rules for virtual asset service providers and ensured that VASPs headquartered in the UK will "collect, verify, and share information related to the transfer of encrypted assets".

At the end of August, the UK solicited public opinions on banning cryptocurrency-related telemarketing calls. Telemarketing calls refer to individuals or companies actively calling potential investors or consumers to provide products or services. Andrew Griffith, the UK Economic Secretary to the Treasury, said: "We want the public to understand that any telemarketing calls promoting financial products such as cryptocurrency assets or insurance are scams, and do not become victims of fraudsters."

September 1st, the UK's cryptocurrency travel rule will take effect, which will stop certain cryptocurrency transfer activities. The travel rule was formulated by the Financial Action Task Force (FATF), a United Nations agency, in June 2019. The UK began implementing the travel rule through legislation in July 2022, which aims to prevent money laundering and terrorist financing activities conducted on the blockchain.

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