Tightening things, are we? HSBC has reportedly changed its policy regarding cryptocurrency. The bank now prohibits customers from buying stock of public companies that hold Bitcoin.
Like MicroStrategy, for example.
The British bank has become stricter with its crypto policy recently, and has put all of the companies with Bitcoin treasuries on the chopping block. No official communication from the bank on this, but an HSBC customer has shared a message that he said he received from the bank.
Apparently, the bank’s new policy applies to products related or referencing the performance of virtual currencies like Bitcoin and Ether.
The notice reads:
“HIDC [HSBC Invest Direct] will not participate in facilitating (buy and/or exchange) product related to virtual currencies, or products related or referencing to the performance of virtual currency.”
The customer even shared the notice from HSBC that dive into more details.
The notice singles out one stock in particular, that of MicroStrategy. While MicroStrategy does not offer any crypto services, it has been heavily buying Bitcoin since October last year. It has invested billions into the cryptocurrency, and continues to do so regularly.
And while the British bank did not specify how much Bitcoin a company has to hold in order for its stock to be banned, MicroStrategy has made it a policy to hold 100% of its treasury reserve in BTC.
Chances are, the bank is arbitrarily deciding what percentage of Bitcoin reserves are okay for clients to reserve in, but obviously this is what one would call the opposite of free market. Hopefully, HSBC puts forth an official announcement regarding what its strategy is regarding crypto.
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