HSBC, the British multinational investment bank, has banned traders of the online share-trading platform to either buy or move MicroStrategy Inc stock into their accounts . The bank has decided not to assist the exchange or even buying of products associated with the accomplishment of virtual currencies.
The crypto giant, however, has refrained from commenting on the choice. Moreover, HSBC is favoring holding, selling, and making outgoing transfers of MicroStrategy shares. The bank is having an unpromising attitude about the new purchases or incoming transfers. The statement from HSBC on 29th March reads;
“HSBC has no appetite for direct exposure to virtual currencies and limited appetite to facilitate products or securities that derive their value from VCs (virtual currencies),”
HSBC policies have been under review since 2018. According to the policy, InvestDirect is available to customers in countries including Canada and Britain. Still, it is not clear which countries will fall under the banned category.
The move via HSBC came in the mindset of the crypto wave, facilitating growth in the large financial firms and companies. Parallel to this, investors are seeking yield in a world of ultra-low interest rates.
Apart from HSBC, other big names in the banking sector are interested in the crypto space. A month back, Goldman Sachs Group Inc declared that it would offer investments in Bitcoin and other digital assets to its wealth management clients.
Another example of Morgan Stanley, which has also started offering clients investments in the emerging asset class, shows the growing interest in the banking sector.
MicroStrategy, electronic car manufacturer Tesla Inc, and payments firm Square Inc are few of the several publicly listed U.S. companies that hold a significant amount of digital coin for their treasury.
From the latest, MicroStrategy declared its total number of coins, which approximately counts to 91,579 Bitcoins. The BTC holdings are worth around $5.5 billion according to the calculation, which equates to around 80% of its $6.8 billion market capitalization.