HSBC will ban users buying MicroStrategy shares
- HSBC has been observed concerned regarding Bitcoin and cryptocurrencies
- Due to the concerns, the bank is banning its customers from acquiring MicroStrategy shares
- Still, the stance of the InvestDirect is unclear regarding the bans
HSBC, one of the Investment banking giants, has been observed concerned regarding MicroStrategy shares due to Bitcoin. The banking service provider has confirmed to ban its customers of InvestDirect from acquiring the business intelligence firm’s shares. Indeed, the banning decision came only due to concerns regarding Bitcoins. According to a spokesperson, the bank has no appetite for direct exposure to crypto-assets. And has a limited appetite to facilitate products or securities that drives their values from such digital currencies.
HSBC InvestDirect customers can’t buy MicroStrategy shares
According to a message from an HSBC user that was shared last week on Twitter, the users of the banking service provider were directly warned. It was mentioned in the letter that the investment service provider has changed his policies. Hence, as per the latest policies, the customers who already own MicroStrategy shares should not acquire more or transfer such shares. However still, the bank will be allowed to hold, sell, and outgoing transfers of the shares.
Why is the bank still crypto cautious?
In the current scenario, we can witness a growing number of banks diving into the cryptosphere. Few major banking institutions like Goldman Sachs and Morgan Stanley are also about to allow their clients to invest in the space. However, observing the scenario, the customers of HSBC are yet concerned with its moves.
HSBC’s crypto stances are yet unclear
It is yet not clear whether the investment service provider’s restrictions only apply to MicroStrategy shares or also to other companies. If the bank’s primary concern is Bitcoin, it might ban its users from acquiring shares of firms like Tesla and Square Inc, which are also into the Bitcoin wagon. Moreover, the bank might also censor the purchase of stocks of Bitcoin mining firms like Riot Blockchain and Hive Blockchain.
On the other side, it is also unclear whether the bank will censor its global customers from purchasing such shares or from selected countries. Indeed, it is also known that only customers from the Canadian region have received such messages.
Many are adopting Bitcoins at an incredible pace, still many are concerned. However, HSBC should understand that it has no rights to guide its clients for should they do with their funds. However, still, the bank’s stances are unclear regarding the enforcement of the ban.
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