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Stock prices depend on the rise and fall of cryptocurrency prices, HSBC bans buying MicroStrategy, delists ARK ETF, is Tesla next?

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Stock prices depend on the rise and fall of cryptocurrency prices, HSBC bans buying MicroStrategy, delists ARK ETF, is Tesla next?

HSBC Bank has recently updated its user information and announcements, indicating that the bank has changed its user policy regarding cryptocurrency-related products. It will now prohibit users from purchasing and holding stocks of enterprises that hold large amounts of cryptocurrencies, such as mining companies, funds under Ark Invest, and MicroStrategy.

MicroStrategy Blacklisted

Earlier, Twitter user @DocumentingBTC released information indicating that HSBC Bank informed users in a message:

Records show that your investment account holds MicroStrategy MSTR stock, a virtual currency product. In regard to virtual currencies such as Bitcoin, Ethereum, and other digital currencies, as well as any assets reliant on the performance of virtual currencies, the bank has changed its policies. Moving forward, the purchase or transfer of MSTR stock will no longer be allowed.

The message was received by users on March 29. Based on the content, the user is likely a client of HSBC InvestDirect, HIDC, a subsidiary of HSBC Bank Canada. As per HSBC's policy, HIDC will not purchase, exchange, or deal with products related to virtual currencies or based on the performance of virtual currencies.

HSBC Taiwan Delists Riot and ARK Funds

HSBC Taiwan recently released a notice titled "Announcement on Delisting US Stocks and Restrictions on Virtual Currency Products," mentioning issues related to Bitcoin:

  • Volatility
  • Investment suitability
  • Concealment of criminal proceeds
  • Terrorist financing
  • Forex controls
  • Tax evasion and sanctions

In addition, due to a lack of regulations related to venture capital, transparency, and oversight, HSBC Bank prohibits the following services:

  • Independent cryptocurrency exchanges for trading with virtual currencies
  • Venture capital miners
  • Conversion services: exchanges converting virtual currencies to fiat or other cryptocurrencies
  • Mixers: services distributing or transferring virtual currencies to a different IP address
  • Cryptocurrency ATM operators
  • Intermediaries acting as intermediaries between exchanges and owners of virtual currencies for the sale of virtual currency proceeds

Based on the reasons above, the latest stocks delisted due to their association with virtual currencies in the quarterly update list are:

  • US mining company: RIOT BLOCKCHAIN INC RIOT.US
  • ARK NEXT GENERATION INTERNET ETF ARKW.US

Will Tesla Stock Be Affected?

Previously reported, in early January, HSBC Bank UK claimed to have banned users from using bank services for deposits and withdrawals via exchanges due to Anti-Money Laundering (AML) regulations, forcing users to seek fiat withdrawal channels through other banks or OTC traders.

This policy update further suppresses products related to virtual currencies. It was reported at the end of March that Tesla officially accepts Bitcoin payments and "does not convert back to fiat."

Currently, Tesla's Bitcoin holdings rank second among publicly traded companies, following only MicroStrategy. If Tesla's holdings continue to increase, will HSBC Bank prohibit trading Tesla, ranked eleventh globally?