Crypto has received a lot of slack from many companies. While most of them have come around, there are many that still are closed to the idea of dealing with crypto. And that is actually too far because we have HSBC that even shuns the idea of companies holding BTC’s trading stocks. They recently announced that they wouldn’t allow trading of the shares Microstrategy because they hold Bitcoin. This also means that they will stop users from trading Tesla shares.
About HSBC and its recent move
HSBC is a British bank that was founded back in the mid-1800s. It is one of the oldest ones in the country, and that explains their strict crypto policies. It does seem that the older a company gets, the difficult it is for them to embrace new tech. A bank customer shared the most recent move that barred customers from trading shares of companies holding BTC. He reported about the notice he received from the bank saying that the bank will not participate in trading virtual currencies or any product related to them.
Too bad for Microstrategy that no share purchase of the company will be allowed? Ahhh No! I don’t think so. The company is not the only one holding Bitcoin. So, if HSBC bars customers from purchasing shares of Microstrategy, they will have to do the same for Tesla and other companies, which will get them a lot of backlash from the community. And even those who don’t care about crypto but just want to trade Tesla’s shares will be really pissed at this move.
HSBC has not informed the amount that companies need to hold in BTC to get banned. The list of companies that hold BTC and the amount they do is growing. And so, HSBC can’t just be randomly turning off plugs for companies holding Bitcoin. A user said they are randomly deciding what amount is okay for their clients to invest in. In fact, there could be legal repercussions of what just happened. The user who reported the incident also tweeted to the CEO of Microstrategy that he should check if this is even legal. He also added, “This is the opposite of a free market.”
I can understand banks not trading in crypto because of the possible risks involved. But not allowing their customers to trade shares of companies holding crypto is crossing the line. We have to wait and see how many companies actually come under this policy of HSBC. And does the bank reconsider this or gets legal notice from these companies.
Do you think that the step taken by HSBC is appropriate? And shouldn’t clients have the option to trade what they deem right? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.
Also Read: RIOT purchased a Bitcoin mining site in Texas for $650 million