HSBC not planning to launch bitcoin trading

Steffy Bogdanova
May 24, 2021 5:25 pm

Europe’s largest bank HSBC confirmed today it is not planning to launch crypto trading. The bank’s Chief Executive Noel Quinn told Reuters that Bitcoin is too volatile and they are not promoting it to their clients.

The statement follows Bitcoin’s recent 50% slump after China’s latest crackdown on crypto trading and Elon Musk’s last week critique on Bitcoin energy consumption and reversing his position on Tesla accepting Bitcoin as payment.

Quinn told Reuters:

Given the volatility we are not into Bitcoin as an asset class, if our clients want to be there then of course they are, but we are not promoting it as an asset class within our wealth management business

The HSBC is going on a different path than rivals such as Goldman Sachs whose digital investing branch, Saxo Markets, recently announced the launch of a new crypto trading service – Crypto FX.

Bitcoin’s price has been on a rollercoaster during the last few days with a 50% fall, trading $36,387 on Monday, just 40 days after it reached a year high of $64,895.

Quinn expressed concerns over Bitcoin’s volatility, as well as lack of transparency which raise concerns for the bank.

Quinn added:

I view Bitcoin as more of an asset class than a payments vehicle, with very difficult questions about how to value it on the balance sheet of clients because it is so volatile.

LeapRate Analyst

Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.
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