In order to limit its customers’ exposure to the volatile asset class, well-known UK-based financial institution National Westminster Bank (NatWest) has placed restrictions on the money that can be used for cryptocurrency transactions.
Currently, NatWest account customers are only permitted to move up to £1,000 ($1,215) each day or £5,000 ($6,090) every thirty days into cryptocurrency exchanges, according to a Bloomberg article.
Currently, NatWest account customers are only permitted to move up to £1,000 ($1,215) each day or £5,000 ($6,090) every thirty days into cryptocurrency exchanges, according to a Bloomberg article.
The third-largest bank in the UK by market capitalization, NatWest, claimed that the decision will stop its clients from “wasting life-changing sums of money” on cryptocurrency investments and con artists.
The bank revealed that scammers are luring investors with false claims of big profits while preying on their ignorance of cryptocurrencies and their volatility to persuade them to send money to cryptocurrency exchanges.
As the bank works to protect its customers, Stuart Skinner, head of fraud protection at NatWest, highlighted that the rise in the amount of frauds using cryptocurrency exchanges compelled the bank to apply the limits
The bank revealed that scammers are luring investors with false claims of big profits while preying on their ignorance of cryptocurrencies and their volatility to persuade them to send money to cryptocurrency exchanges.
As the bank works to protect its customers, Stuart Skinner, head of fraud protection at NatWest, highlighted that the rise in the amount of frauds using cryptocurrency exchanges compelled the bank to apply the limits
This is not the first time the bank has placed such limitations on its customers, either. Because of the sharp rise in investment fraud and scams, NatWest temporarily restricted the amount of money customers may send to cryptocurrency exchanges in June 2021.
At a comparable point, NatWest also prohibited payments to a number of cryptocurrency companies that had harmed its customers through fraud.
At a comparable point, NatWest also prohibited payments to a number of cryptocurrency companies that had harmed its customers through fraud.
“Criminals play on a lack of understanding of how cryptocurrency markets work and their unpredictability, to encourage investors to transfer money to exchanges, which are often set up in the customer’s own name by the criminal or by the victim, under duress from the criminal,” NatWest said in a statement.
It is important to note that other UK banks have recently placed limitations on consumers in addition to NatWest. Early this month, CryptoPotato revealed that a number of major banks had either prohibited cryptocurrency or placed harsher spending restrictions on customer accounts.
Recently, HSBC prohibited clients from using their credit cards to buy cryptocurrencies, citing potential hazards, while Nationwide bank established a daily cap of £5,000 ($6,090) on all purchases made with digital asset debit cards.
Recently, HSBC prohibited clients from using their credit cards to buy cryptocurrencies, citing potential hazards, while Nationwide bank established a daily cap of £5,000 ($6,090) on all purchases made with digital asset debit cards.