Coinbase, one of the world’s largest cryptocurrency exchanges, has been added to the list of companies banned by HSBC. This move comes as no surprise, as HSBC has made it clear in the past that it is not interested in doing business with companies that deal in cryptocurrencies.
Cryptocurrency has gone mainstream
One of the key features that makes cryptocurrencies such an attractive proposition is the fact that they are not subject to the same regulations as traditional fiat currencies. This means that there is no central authority controlling the supply of currency, and no need for a third party to process transactions. Cryptocurrencies are also significantly cheaper to process than traditional payment methods, and are often much faster too. Coinbase debuted on Nasdaq final Wednesday in a direct itemizing, in what was seen as one other key step in the direction of cryptocurrencies becoming a mainstream medium of exchange.
Unexpected action from HSBC
Coinbase has been added to the list of companies that HSBC will not do business with. This is just another example of the crackdown on cryptocurrencies by banks and other financial institutions. Coinbase was recently added to the list of blacklisted companies on Mastercard’s website. This move by HSBC is likely an attempt to protect its customers from potential scams or fraud associated with cryptocurrency investments.
HSBC’s Decision Didn’t Catch On
This move comes as a surprise to many, as Coinbase has been seen as one of the most reputable exchanges in the industry. In a statement released by Coinbase, they said that they were “disappointed” by HSBC’s decision.
The Great Wall of Money Joins the Fray
BNY Mellon, Morgan Stanley, and other financial sector behemoths have increased their range of services to keep up with consumer demand for digital property. These include BNY Mellon’s introduction of crypto custodial providers and Morgan Stanley’s plan to offer bitcoin access to wealth management clients and consider publicizing Bitcoin by its funding arm, Counterpoint Global.
Even among business giants opinions about cryptocurrency are divided and from the latest news we know that Everbowl adopts Bitcoin standard, but at the same time Microsoft is shutting down its Azure Blockchain service, so it will be interesting to watch the development of cryptocurrency in the future.
What is HSBC?
HSBC Holdings plc, HSBC Bank is one of the largest financial conglomerates in the world, the largest bank in the UK in terms of assets and market capitalization.