{"id":229735,"date":"2021-04-18T12:37:00","date_gmt":"2021-04-18T09:37:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bitcoin-on-balance-sheet-attracts-negative-attention-from-anti-crypto-banks\/"},"modified":"2021-04-18T12:37:00","modified_gmt":"2021-04-18T09:37:00","slug":"bitcoin-on-balance-sheet-attracts-negative-attention-from-anti-crypto-banks","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bitcoin-on-balance-sheet-attracts-negative-attention-from-anti-crypto-banks\/","title":{"rendered":"# Bitcoin on balance sheet attracts negative attention from anti-crypto banks"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3e70c6c10ad\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3e70c6c10ad\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-on-balance-sheet-attracts-negative-attention-from-anti-crypto-banks\/#HSBC_blacklists_MicroStrategy_stock\" >HSBC blacklists MicroStrategy stock<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-on-balance-sheet-attracts-negative-attention-from-anti-crypto-banks\/#Making_sense_of_it_all\" >Making sense of it all<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-on-balance-sheet-attracts-negative-attention-from-anti-crypto-banks\/#New_layers_of_legitimacy\" >New layers of legitimacy<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Bitcoin on balance sheet attracts negative attention from anti-crypto banks <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDQvZTg1ZDdkNDEtZTNkYi00MDBiLTgwNmItMzQ3NWY5OGNlNDQ4LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-5a136f3a>MicroStrategy\u2019s continuous Bitcoin acquisition has drawn the ire of investment banking giant HSBC. Despite being one of the largest business intelligence firms in the world, HSBC has stated that MicroStrategy is now a \u201cvirtual currency product,\u201d a designation akin to the pseudo-Bitcoin exchange-traded fund status attached to the company on account of its sizable Bitcoin (BTC) balance sheet.<\/p>\n<p>Since August 2020, MicroStrategy has embarked on a Bitcoin acquisition spree and now holds more than $5 billion worth of BTC. Michael Saylor, the company\u2019s CEO, has also become an outspoken Bitcoin proponent. Saylor\u2019s Bitcoin evangelism has included attempts to encourage other publicly listed firms to add BTC to their balance sheet. Indeed, some other companies in the United States have emulated Saylor\u2019s Bitcoin adoption.<\/p>\n<p>With corporate Bitcoin adoption becoming commonplace, the conversation <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ears to be shifting toward life and annuity companies and sovereign wealth funds to see where the next wave of institutional BTC investment will emerge. However, for legacy players like HSBC, Bitcoin and cryptocurrencies, in <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>, remain anathema even if the actions taken thus far appear to be arguably arbitrary.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"HSBC_blacklists_MicroStrategy_stock\"><\/span>HSBC blacklists MicroStrategy stock<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>HSBC blacklisted MicroStrategy\u2019s stock, preventing customers of the bank\u2019s online retail trading platform in Canada from acquiring the company\u2019s shares. While HSBC did not respond to Cointelegraph\u2019s request for confirmation on the report, the bank has publicly verified the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> using similar statements contained in the original message shared by customers on <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a>.<\/p>\n<p>In the message sent to HSBC InvestDirect customers who already hold MicroStrategy (MSTR) stock, the bank revealed that additional MSTR purchases will no longer be possible on the platform. The communique stated that such customers could hold their current MicroStrategy stock balances or sell their shares.<\/p>\n<p>According to HSBC, the blacklisting was in line with the bank\u2019s crypto restrictions enacted back in 2018. An excerpt from the bank\u2019s policy as contained in the message to HSBC InvestDirect, or HIDC, customers reads: \u201cHIDC will not participate in facilitating (buy and\/or exchange) product relating to virtual currencies, or products related to or referencing to the performance of virtual currency.\u201d<\/p>\n<p>Reacting to the news, Stuart Hoegner, general counsel at crypto exchange platform Bitfinex, told Cointelegraph that the decision was a \u201cregressive step\u201d in the context of the growing appeal of cryptocurrencies in the mainstream arena, adding:<\/p>\n<blockquote><p>\u201cInstead of refusing to participate in products relating to virtual currencies, HSBC should instead focus on delivering optimal services to its customers, many of whom pay high fees and interest rate charges on the bank\u2019s loans and credit card products. In fact, it is blockchain <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a>\u2019s capacity \u2014 by virtue of removing intermediaries \u2014 that can enhance levels of inclusion, accessibility and transparency in financial products.\u201d<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"Making_sense_of_it_all\"><\/span>Making sense of it all<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In singling out MicroStrategy, HSBC referred to the company as a \u201cvirtual currency product,\u201d hence its decision to prevent customers from buying MSTR. However, HDIC lists shares of several companies with significant cryptocurrency involvement including Tesla, Square and Hut 8 Mining, to mention a few.<\/p>\n<p>Elon Musk\u2019s electric vehicle manufacturing giant, Tesla, acquired about $1.5 billion worth of Bitcoin back in February. Hut 8 is a Bitcoin mining establishment, while Square operates Cash App, an avenue for buying BTC that also contributes greatly to Square\u2019s revenue bottom line.<\/p>\n<p>Unlike MicroStrategy, which only holds Bitcoin on its balance sheet while still carrying out its function as a business intelligence firm, some of the tradable stocks on the HDIC platform belong to companies, like Hut 8, that derive value directly from cryptocurrencies.<\/p>\n<p>Commenting on the lack of clarity in HSBC\u2019s decision, Jeffrey Wang, head of Americas at crypto finance provider Amber Group, told Cointelegraph: \u201cIt\u2019s a very slippery slope for HSBC. Will they publish a clear set of defined rules for what they deem to be companies that derive value from virtual currencies?\u201d <\/p>\n<p>He questioned further: \u201cWhy haven\u2019t they also put this trading restriction on other companies that have publicly disclosed holdings of Bitcoin like Tesla? Will they block trading in Coinbase?\u201d As an HDIC customer, Wang also expressed displeasure at the uneven application of HSBC\u2019s anti-crypto policies, adding:<\/p>\n<blockquote><p>\u201cI think this is HSBC overstepping its reach on its retail brokerage offering. If a company is lawfully listed on the Nasdaq and is in compliance with any regulatory requirements, the decision to buy this stock should be left up to the end-user and not the brokerage.\u201d<\/p><\/blockquote>\n<p>HSBC\u2019s ban on MicroStrategy stock trading becomes even more bizarre, given that customers can still buy exchange-traded funds that contain MSTR on the platform. Indeed. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.etf.com\/stock\/MSTR\">According<\/a> to ETF.com, 88 ETFs hold MicroStrategy shares.<\/p>\n<p>The MSTR blacklisting is hardly the first negative consequence of MicroStrategy\u2019s Bitcoin investment push. In December 2020, Citibank downgraded the company\u2019s stock citing MicroStrategy\u2019s \u201cdisproportionate\u201d focus on BTC.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"New_layers_of_legitimacy\"><\/span>New layers of legitimacy<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>HSBC\u2019s action puts the bank firmly in the corner of legacy financial institutions still averse to Bitcoin and cryptocurrency innovation. The move offers the latest indication of the bank\u2019s repudiation of digital currencies following efforts to<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.thetimes.co.uk\/article\/bitcoin-holders-barred-from-depositing-profits-in-uk-banks-pgswbfrdz\"> block<\/a> customers from repatriating crypto trading profits from exchanges to their bank accounts earlier in the year.<\/p>\n<p>Meanwhile, several major players in the traditional finance arena are increasingly becoming more exposed to Bitcoin and cryptocurrencies as the novel technology gains new layers of legitimacy. From offering custody services for digital currencies to establishing digital asset exchange platforms, banks across the United States, Europe and Asia are showing a greater appetite for digital currencies.<\/p>\n<p>For Wang of Amber Group, HSBC is holding fast to a shrinking position of being a banking institution that remains averse to cryptocurrencies, telling Cointelegraph:<\/p>\n<blockquote><p>\u201cI think HSBC will be in the tiny minority \u2014 if not the only brokerage \u2014 that will restrict its retail investors from buying shares in publicly traded and regulated companies due to exposure to virtual currencies.\u201d<\/p><\/blockquote>\n<p>Recently, European investment banking giant Soci\u00e9t\u00e9 G\u00e9n\u00e9rale issued a tokenized security representing one of its structure products \u2014 investment packages linked to assets and derivatives \u2014 on the Tezos blockchain. The news marked a third consecutive year of a blockchain-related financial product being issued.<\/p>\n<p>In a message to Cointelegraph, Jean-Marc Stenger, managing director of digital capital markets at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale and head of its fintech startup subsidiary, SG Forge, remarked that crypto companies will challenge legacy finance players that are slow to adapt to the emerging digital financial landscape. Rather than advocate for eschewing digital assets, Stenger identified the advantages held by traditional finance in real-world asset-based tokenization, adding:<\/p>\n<blockquote><p>\u201cTraditional financial institutions know how to structure regulated digital assets and how to cope with related requirements (investors protection, rules for markets integrity, compliance, KYC, continuity plans). But more importantly, they have origination and distribution capabilities and day-to-day business relationships with their clients.\u201d<\/p><\/blockquote>\n<p>While Soci\u00e9t\u00e9 G\u00e9n\u00e9rale\u2019s digital asset offerings are not tied to cryptocurrencies, major U.S. investment banks such as Goldman Sachs and Morgan Stanley are looking to offer their clients exposure to Bitcoin funds.<\/p>\n<p>Amid the continued influx of institutional actors into the Bitcoin space, the question of whether governments will invest in BTC is likely becoming a matter of \u201cwhen\u201d and not \u201cif.\u201d With insurance companies and pension funds dipping their toes in the Bitcoin pool, sovereign wealth funds appear to be not too far behind.<\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/bitcoin-on-balance-sheet-attracts-negative-attention-from-anti-crypto-banks\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Bitcoin on balance sheet attracts negative attention from anti-crypto banks &#8221; MicroStrategy\u2019s continuous Bitcoin acquisition has drawn the ire of investment banking giant HSBC. Despite being one of the largest business intelligence firms in the world, HSBC has stated that MicroStrategy is now a \u201cvirtual currency product,\u201d a designation akin to the pseudo-Bitcoin exchange-traded&#8230;<\/p>\n","protected":false},"author":1,"featured_media":229736,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDQvZTg1ZDdkNDEtZTNkYi00MDBiLTgwNmItMzQ3NWY5OGNlNDQ4LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74355,71939,117,71879,70359],"class_list":["post-229735","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-adoption","tag-banks","tag-business","tag-hsbc","tag-stocks"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/229735","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=229735"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/229735\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/229736"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=229735"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=229735"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=229735"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}