The bank described the actions of MicroStrategy as a “digital currency product” and restricted new transfers to its users.
HSBC, one of the world’s largest banking entities, is setting restrictions to its clients from purchasing MicroStrategy (MSTR) shares due to a new policy limiting interaction with digital currencies. The financial giant released a statement to its clients, which appeared to be spread by Twitter users. In the email, users can read:
“We would like to ay to you that HSBC has changed the policy on digital currencies (such as Bitcoin, Ethereum, and other cryptocurrencies) and related products or that refer to the performance of virtual currencies.”
HIDC will not participate in the facilitation of products that might sustain relationships to digital currencies or related products. HIDC won’t even take part in any operation regarding the performance of cryptocurrencies.
According to the information, users of the bank’s trading platform HSBC InvestDirect or HIDC would be the affected ones by the measure. HSBC InvestDirect is available to the bank’s clients living in Canada, Jersey, and the United Kingdom.
The email suggests that the Canadian division is the one that has assumed the new policy that limits operations related to crypto products to its users. However, it is unknown if the ban applies to users in all jurisdictions.
HSBC and a Policy against Digital Currencies
A fascinating fact about the new policy is that HSBC has chosen to blacklist MicroStrategy shares, considering that it is not a digital asset or a product that could directly link to the crypto market.
MicroStrategy is a business software developer that appeared on the US Stock Exchange in 1998, and Michael Saylor was the precursor, a public digital currency lover. MicroStrategy is a pioneer in the adoption of Bitcoin.
Since last year, the firm has embarked on an aggressive journey to consolidate its investment strategy regarding cryptocurrency, with the current storage of more than 91,000 bitcoins in its treasury.
The banking giant called the company’s shares a “digital currency” in its statement. The HSBC division has warned its clients that they will not have access to new purchases or transfers of such shares.
Thi announcement seems not to be the first time that the third largest bank in the world by assets under management has highlighted a policy against digital currencies.
MicroStrategy in a Blacklist
Until now, reports suggest that HSBC has taken action to limit the trading of MicroStrategy shares, linking it to a crypto product. However, other publicly traded companies have been investing in Bitcoin, such as Tesla and Square.
Coinbase also made an announcement stating that it will begin direct listing on Nasdaq on April 14. Meanwhile, for MicroStrategy, investing in Bitcoin appears to impact the value of its shares positively.
The firm’s share price peaked in February, about $ 1,200 per share. While the stock has fallen slightly since then, MSTR is currently trading above its average value last year, at $ 700.
By: Jenson Nuñez
