News surfaced last week that HSBC is banning customers from buying shares in the companies, trading Bitcoin, and the news is now confirmed by an official at the bank.
As Reuters reported on Monday, the bank bans customers from buying shares in Microstrategy; a business analytics and mobility platform. Reuters cited a statement from HSBC:
“HSBC has no appetite for direct exposure to virtual currencies and a limited appetite for promoting products or securities that derive their value from VCs (virtual currencies).”
Confirmation came after a screenshot of an email popped up in the messages. This reportedly prevented customers from buying MicroStrategy stock, and had also noted that the bank was not making facilities available to any company or firm that trades in virtual assets such as Ethereum or Bitcoin.
The email specifically mentioned HSBC’s subsidiary available in Canada and the UK. “HSBC InvestDirect”.
Some of the questions remain unanswered at the end of the bank, ie what is the scope of the bank’s instructions? Is it Canada or the UK specific? Which are the firms or firms whose shares are not to be brought?
Additionally, it is noteworthy that the micro-strategy currently holds 91,579 BTCs. According to Reuters calculations, 80% of the companies’s total $ 6.8 billion stakes are in BTCs, which equates to $ 5.5 billion in US dollars.
Recently, Michael Saylor, founder and CEO of Microstrategy, was named one of Forbes’ top cryptocurrency tycoons. With a net worth of $ 2.3 billion, Michael Saylor was second on the list, led by Cameron Winklevoss and Tyler Winklevoss (siblings and partners) with a net worth of $ 3 billion each. Microstrategy and its CEO Michael Saylor are among the top Bitcoin investors.
As for HSBC, it is strange that the UK’s top investment bank would be imposing a ban when many banking giants find their way into the crypto industry.