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According to reports, HSBC Bank changed its policy on cryptocurrencies. The bank now prohibits customers from buying shares in public companies that hold Bitcoin, such as Microstrategy. All companies with Bitcoin funds may be hacked at HSBC.
According to reports, the British bank HSBC (HSBC) has become stricter on its encryption policy. The bank now prohibits its customers from buying shares in listed companies that hold bitcoin in its treasury.
HSBC Bank customer He shared the news he said he received from the bank, informing him of changes in cryptocurrency policy, taking Bitcoin and Ethereum as examples. The bank’s new policy applies to “products that are related to the performance of virtual currencies or refer to virtual currencies”. The notification appears as:
HIDC [HSBC Invest Direct] Will not participate in the promotion (purchase and/or exchange) of products related to virtual currency, or products related to the performance of virtual currency or products that refer to virtual currency.
The notice specifically pointed out a stock. “Our records indicate that your direct HSBC investment account holds Microstrategy Inc-A-MSTR-US, a virtual currency product.”
Although Microstrategy does not provide any encryption services, it has been buying BTC in large quantities since October last year. The company has accumulated nearly 100,000 BTC and regards the acquisition of cryptocurrencies as one of its main goals.
HSBC’s notification is still ongoing:
Although we allow holding and/or selling/transferring out MSTR-US assets in your HSBC investment direct account, we do not allow new purchases or transfers.
The British bank did not specify how many bitcoins a company must hold to remove its shares from the bank. Microstrategy has developed a policy to keep 100% of its treasury reserves in BTC.
The rapidly growing number of companies said they are investing in Bitcoin, but the investment ratio is usually smaller than Microstrategy. These include Elon Musk’s Tesla, which invested $1.5 billion in January. Jack Dorsey’s Square Inc. also uses 5% of its total cash reserves for Bitcoin. The website bitcointreasuries.org selects more and more companies with Bitcoin in the treasury.
A Twitter user commented on this situation, speculating that HSBC Bank of Canada “may be arbitrarily determining the percentage of Bitcoin reserves that customers are allowed to invest.”
The HSBC customers who received the notification tweeted to Michael Saylor, CEO of MicroStrategy: “You may want to ask your legal team whether what HSBC Canada is doing here is legal. It certainly doesn’t sound like it They don’t allow us to buy Microstrategy.” When talking about all companies that have Bitcoin investments, he further pointed out: “All these companies may be in the midst of a chop because they hold Bitcoin. This is the same as the “free market.” in contrast.”
What do you think of HSBC’s new encryption policy? Let us know in the comments section below.
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