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NatWest Bank Imposes Monthly Crypto Exchange Payment Limit of $6,000, Citing Fraud Concerns – Here’s the Latest


NatWest Bank Imposes Monthly Crypto Exchange Payment Limit of $6,000, Citing Fraud Concerns – Here’s the Latest

Image source: BBC

UK consumer-focused bank NatWest is limiting the amount of money customers can transfer to cryptocurrency exchanges, showing the deteriorating relationship between digital asset firms and financial institutions.

Bank users will be limited to payments of £1,000 ($1,218) per day and £5,000 ($6,090) over a 30-day period to cryptocurrency exchanges, NatWest said in a statement. recent blog post.

The bank cited fraud and scam risks as the reason for the decision. “NatWest is bolstering customer protection against crypto criminals after consumers lost £329m last year,” the bank said.

Specifically, NatWest asserted that men over 35 are most at risk because they are willing to undertake risky investments. The bank said that promises of high returns also entice users to invest in crypto Ponzi schemes.

“We have seen an increase in the number of scams using cryptocurrency exchanges and we are taking action to protect our customers,” Stuart Skinner, head of fraud protection at NatWest, said in a comment.

In fact, the crypto industry lost an estimated $4 billion worth of digital assets to hacks, frauds, scams, and raffles last year, according to a report from platform Web3. Bug Bounty ImmuneFi. However, the report indicates that frauds, scams and sweepstakes account for only 4.4% of total losses.

Major banks around the world have fallen out of favor with the crypto industry in recent months. In the UK, HSBC and Nationwide Building Society implemented restrictions on their customers’ ability to purchase cryptocurrencies earlier this month.

Other major UK institutions that have imposed restrictions on crypto-related activities in recent years include Banco Santander SA, Lloyds Banking Group Plc and Natwest Group Plc.

Regulators around the world, including the International Monetary Fund (IMF) and the Financial Action Task Force (FATF), have consistently warned banks against facilitating crypto purchases due to the perceived risks that crypto-assets can pose to the traditional financial system.

Paysafe suspends payments to Binance

In a separate announcement, Paysafe, an online payments provider, said it would end services to UK customers from Binance, the world’s largest crypto exchange.

This forced Binance to suspend sterling deposits and withdrawals for new customers, while existing customers have until May 22 to transact in the currency.

“We have concluded that the UK crypto regulatory environment is too difficult to offer this service at this time, and so this is a prudent decision on our part taken with great caution,” Paysafe said in a statement.

Meanwhile, Binance has come under increasing scrutiny in the US lately. As reported, earlier this month Senators Elizabeth Warren (D-Mass.), Chris Van Hollen (D-Md.) and Roger Marshall (R-Kansas) asked Binance and its US partner Binance.US to provide detailed information regarding their business operations amid accusations of illegal practices.

Additionally, Binance has been under investigation by the US Department of Justice (DOJ) since 2018. The investigation reportedly focuses on money laundering conspiracy, unlicensed money transmission, and sanctions violations. criminal.

Joanna Swanson

Joanna Swanson is Europe correspondent at the Thomson Reuters Foundation based in Brussels covering politics, culture, business, climate change, society, economies and inclusive tech. With specific focus in breaking news, she has covered some of the world's most significant stories.