On March 14, 2023, UK-based bank Natwest Group announced new restrictions have been announced. The limits imposed on crypto exchanges are £1,000 ($1,215) daily and £5,000 ($6,077) for 30 days.
Natwest’s cautious approach to Crypto Assets prompts another remittance restriction
With the banking sector in turmoil in the U.S. following the collapse of Silicon Valley Bank (SVB) and its subsidiary, Silicon Valley Bank U.K. Ltd, Edinburgh-based financial institution Natwest is restricting cryptocurrency payments. However, Natwest cites as the reason for the restrictioncryptocurrency fraud in the UK, which is costing consumers £329 million a year{/19}. The bank’s notice also indicates that men over the age of 35 are “most at risk” of such scams.
A Natwest press release published Tuesday detailed that “cryptocurrency investments are often made through legitimate exchange platforms.” The British bank said these “websites allow customers to buy, sell or exchange cryptocurrencies for other digital or traditional currencies.” Natwest added that Natwest also stressed that in addition to men over 35, criminals are taking advantage of the “cost-of-living crisis” to entice investors with the promise of higher returns.”
Stuart Skinner, head of Natwest’s anti-fraud department, noted that “you should always keep your cryptocurrency wallet to yourself and not allow anyone else access to it. ‘If you don’t set up your wallet yourself or don’t have access to your money, it is most likely a scam. Scams using cryptocurrency exchanges are on the rise and we are taking action to protect our customers.”
This is not the first time Natwest has restricted money transfers to cryptocurrency exchanges. The bank imposed temporary restrictions in June 2021 and specifically blocked payments to Binance the following month, citing an increased risk of cryptocurrency fraud; Natwest has often classified cryptocurrency assets as “high-risk” in the past. In April 2021, shortly before the first restrictions were imposed, Natwest’s risk manager said We have no desire to deal with customers” who trade in cryptocurrencies.
Image Credits: Shutterstock, Pixabay, Wiki Commons, Alex Yeung / Shutterstock.com.
