HSBC restricts crypto purchases on FCA advice

HSBC does not allow crypto purchases using their cards starting Feb. 23 due to possible customer risk. The financial giant claims that the Financial Conduct Authority (FCA) has warned against investing in crypto assets, considering them high-risk and speculative investments.

However, HSBC and The Sandbox Metaverse (a virtual world where players can build, own, and monetize their gaming experiences on the Ethereum (ETH) blockchain) created an experience that one can only try if the person buys a pass using crypto.

Pequelord, an NFT enthusiast and founder of Sloooths, a collection of 3,500 super mega cute NFTs living on the Ethereum blockchain, and TheMichisNFT, an NFT collection, took to Twitter to complain about how he got an email from HSBC informing him of the restrictions of crypto purchases.

He highlighted how conflicting it is that the financial giants partnered with Sandbox on a project one could only try if you bought a pass using crypto. 

HSBC Bought Virtual Land in The Sandbox’s Metaverse, in which they hosted a Rugby Sevens Tournament.

HSBC and The Sandbox had announced a new partnership claiming that it would open up many opportunities for virtual communities worldwide to engage with global financial services providers and sports communities in The Sandbox metaverse.

The collaboration between The Sandbox and HSBC would have seen the multinational financial services company purchase a piece of LAND, or virtual real estate, in the metaverse, which would have been built to interact and connect with sports, esports, and gaming lovers.

According to the companies, the agreement would open the door for other global institutions to continue innovating in web3 as consumer adoption demands more robust experiences in the metaverse through decentralized and gamified offerings. With many of these platforms based on blockchain technology, metaverse virtual worlds offer users participatory and immersive experiences.