HSBC bans customers from buying Bitcoin-backer MicroStrategy shares

Post by niceairport » Tue, Apr 13, 2021, 3:24 AM UTC

ptero wrote: post #13

niceairport wrote: post #12

Earlier quoted context omitted.

Maybe they have issues with people taking on a margin that they cannot afford? Cryptocurrencies being as volatile as they are shorting them on a margin can result in high losses that HSBC prefers not to be involved with? Just a guess.

Not impossible, but IMO highly unlikely: stocks, especially smaller ones can be way more volatile than any currency with over 1T market value. And you can still buy those on margin.

Post by gruez » Tue, Apr 13, 2021, 3:31 AM UTC

niceairport wrote: post #12

Someone1234 wrote: post #4

> “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 said in a statement. But you wouldn't be? This is a product literally called "InvestDirect" where private individuals are buying stocks and assuming all the risk. If you don't want to offer margin on virtual currency products, more pow…

Maybe they have issues with people taking on a margin that they cannot afford? Cryptocurrencies being as volatile as they are shorting them on a margin can result in high losses that HSBC prefers not to be involved with? Just a guess.

Post by [deleted] » Tue, Apr 13, 2021, 3:32 AM UTC

elliekelly wrote: post #15

Someone1234 wrote: post #4

> “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 said in a statement. But you wouldn't be? This is a product literally called "InvestDirect" where private individuals are buying stocks and assuming all the risk. If you don't want to offer margin on virtual currency products, more pow…

Knowing absolutely nothing about this particular situation I’d be willing to bet this decision is a lingering side effect of HSBC’s most recent (and seemingly perpetual) AML issues. I suspect they’re trying to appear squeaky clean and an action like this is quick, easy to implement operationally, and looks good to regulators who are uneasy about cryptocurrency’s reputation for facilitating criminal activity online.

Post by robjan » Tue, Apr 13, 2021, 3:49 AM UTC

petre wrote: post #22

Someone1234 wrote: post #4

> “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 said in a statement. But you wouldn't be? This is a product literally called "InvestDirect" where private individuals are buying stocks and assuming all the risk. If you don't want to offer margin on virtual currency products, more pow…

They just have appetite for drug and weapons money laundring. https://www.theguardian.com/business/2012/dec/14/hsbc-money-...

Post by the_local_host » Tue, Apr 13, 2021, 3:50 AM UTC

Someone1234 wrote: post #4

> “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 said in a statement. But you wouldn't be? This is a product literally called "InvestDirect" where private individuals are buying stocks and assuming all the risk. If you don't want to offer margin on virtual currency products, more pow…