On March 14, 2023, UK-based bank Natwest Group announced new limits on cryptocurrency payments, citing cryptocurrency scams costing UK consumers £329 million a year. The limit imposed on cryptocurrency exchanges is £1,000 per day ($1,215), with a 30-day limit of £5,000 ($6,077).
Natwest’s Cautious Approach Towards Crypto Assets Generates Another Transfer Cap
Amid the slump in the banking sector in the United States following the collapse of Silicon Valley Bank (SVB) and its subsidiary, Silicon Valley Bank UK Ltd., Edinburgh-based financial institution Natwest is limiting cryptocurrency payments. Natwest, however, appointment UK cryptocurrency scams costing consumers £329 million ($399 million) annually as the reason for the cap. The bank’s notice also indicates that men over the age of 35 are “higher risk” of these types of scams.
Natwest’s press release, published on Tuesday, details that “investments in cryptocurrency are often made through legitimate exchange platforms.” The British banks added that these “websites allow customers to buy, sell or exchange cryptocurrency for another digital currency or traditional currency.” Natwest also emphasizes that, in addition to men over 35, criminals are using the “cost of living crisis” to lure investors with the promise of high returns.
“You should always have sole control of your cryptocurrency wallet and no one else should have access,” said Stuart Skinner, head of Natwest’s fraud protection unit. “If you didn’t set up the wallet yourself or can’t access the money, it’s probably a scam. We have seen an increase in the number of scams using cryptocurrency exchanges and we are acting to protect our customers.”
This is not the first time that Natwest has limited transfers to cryptocurrency exchanges. The bank set a temporary limit in June 2021 and, the following month, specifically blocked payments to Binance, citing the increased risk of cryptocurrency scams. Natwest has often categorized cryptocurrency assets as “high risk” in the past. In April 2021, just before the first cap was imposed, a Natwest risk manager said, “We don’t feel like dealing with clients” who transact with cryptocurrencies.
What do you think about Natwest limiting crypto payments to digital currency exchanges? Share your thoughts on this topic in the comments section below.
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