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Buying and selling crypto through HSBC Bank: A user's guide

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Cryptocurrencies have seen a remarkable surge in popularity in recent years, with more and more people recognizing their potential as a new form of investment. But crypto trading with HSBC is not an easy process.

HSBC Bank has a restrictive policy on crypto transactions, which means that an investor might face challenges or limitations when trying to buy or sell crypto using its services.

What is the HSBC crypto stance?

HSBC is widely recognized as one of the largest and most prominent financial institutions globally, with operations in multiple countries and territories. However, it is also one of the most conservative banks when it comes to crypto.

The bank's CEO claimed in 2021 that it does not provide platforms for trading cryptocurrencies, nor does it offer HSBC crypto as an investment avenue to its customers. The bank also does not provide custody or banking services for crypto assets.

The reason for this policy is that HSBC Bank considers crypto to be too volatile, risky, and unregulated for its standards. The bank also cites concerns about money laundering, fraud, and tax evasion that could be associated with crypto transactions.

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How can one buy or sell crypto through HSBC Bank?

Despite HSBC Bank's official stance, there might be some ways for HSBC crypto trading. However, these methods are not guaranteed to work and might involve some fees, delays, or restrictions. Here are some of the possible options:

  • Use a third-party platform that accepts HSBC Bank transfers. Some crypto trading platforms, such as Coinbase, Binance, or Kraken, allow you to link your HSBC Bank account and use it to fund your crypto purchases or withdrawals. However, this option might not be available in all countries or regions where HSBC Bank operates. Moreover, HSBC Bank might block or reject your transfers if it detects that they are related to crypto transactions. In that case, you might face some penalties or account closure from the bank.
  • Use a peer-to-peer (P2P) platform that connects you with other buyers or sellers. Some platforms, such as LocalBitcoins, Bisa, or Paxful, allow you to trade crypto directly with other people using various payment methods, including HSBC Bank transfers. However, this option might also be subject to HSBC Bank's scrutiny and intervention. Moreover, you might face some risks of fraud, scams, or disputes when dealing with strangers online. Therefore, you should always use a reputable platform that offers escrow and dispute resolution services.
  • Use a credit/debit card or a digital wallet that supports crypto transactions. Some credit/debit cards or digital wallets, such as Visa or Wirex, allow you to deposit fiat currency into your crypto exchange account. Your balance can be topped up using your HSBC Bank card or account. However, this option might incur fees or limits from both the card/wallet provider and HSBC Bank.

Final thoughts on HSBC crypto

Buying and selling crypto through HSBC Bank is possible but not easy. The bank views cryptocurrencies as highly volatile and risky. In this regard, it does not provide trading platforms, nor does it offer HSBC crypto as an investment option to its customers. However, the bank provides services enabling its customers to buy and sell crypto. One can, for instance, transfer fiat currency to a credit card and then use it to fund their crypto trading accounts.

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Nancy Lubale

Nancy Lubale

Nancy is a self-taught crypto, blockchain and tech news author and researcher with more than six years of experience producing news coverage in the cryptocurrency, NFT, the Metaverse, blockchain technology, investing and technology fields. Driven by her passion for technology, she has worked for top crypto companies, including Business2Community, Kraken Learn, InsideBitcoins, Blocknews.com, Vauld Insights, Coingape, Forexcrunch, and Economywatch. Her research interests are in technical analysis of crypto assets, DeFi, NFTs, and on-chain data analysis and of late tech and AI news.

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