The U.Okay financial institution Santander will forestall its prospects from sending real-time transfers to cryptocurrency exchanges beginning subsequent yr.
The prohibition is supposed to guard prospects from scams and fraud, in addition to the overall dangers related to crypto investing.
Banks Blocking Bitcoin Purchases?
In a notice printed to its web site on Friday, Santander stated that sure new limits can be imposed beginning subsequent week. These embody a £1,000 restrict per transaction when utilizing on-line or cellular banking, and a £3000 restrict per 30 days.
“You can still get payments from cryptocurrency exchanges into your account,” the financial institution clarified. “We’ll be making more changes to limit or prevent payments to crypto exchanges in the future, though we’ll always let you know before we make these changes.”
Santander famous that there’s been a “large increase” in its U.Okay. prospects changing into victims of cryptocurrency fraud in latest months. Because of their pseudonymity and irreversible nature, cryptocurrencies generally is a well-liked car for sure kinds of crimes, together with phishing scams and ransomware.
What’s extra, shoppers are unlikely to be protected for crypto-related crimes by the Monetary Ombudsman Service or Monetary Companies Compensation Scheme. As such, the financial institution deemed it essential to impose transaction limits to guard shoppers.
In accordance with Reuters, the complete block on transfers to exchanges might be carried out at an unspecified level in 2023. It can notably block “faster payments” – the real-time cost infrastructure utilized by most financial institution accounts inside the nation.
In emailed feedback to Reuters, Quicker Funds proprietor Pay UK stated it was “working with regulators and the payments industry to develop and implement better protection for victims of fraud.”
Crypto Entry within the U.Okay.
Santander additionally plans to proceed stopping transfers to Binance, which the Monetary Conduct Authority stated shouldn’t be approved to function within the U.Okay. Withdrawals from the alternate will nonetheless be enabled. The FCA warns traders on its website that they need to be ready to lose all their cash when investing in crypto.
Information from Finder suggests that just about half (47%) of main U.Okay. banks don’t help transfers to crypto exchanges, or direct purchases of crypto by way of bank card.
Some banks, nonetheless – like Revolut – supply refined companies that permit customers to pay for merchandise utilizing cryptocurrency straight.
The nation’s latest Prime Minister, Rishi Sunak, has beforehand proven curiosity in making the U.Okay. a worldwide crypto hub.