British Bank Natwest Implements New Limits on Cryptocurrency Payments to Combat UK Crypto Scams

On March 14, 2023, the U.Ok.-based financial institution Natwest Group introduced new limits on cryptocurrency funds, citing crypto scams that price U.Ok. customers £329 million yearly. The restrict imposed on crypto exchanges is £1,000 day by day ($1,215), with a 30-day restrict of £5,000 ($6,077).

Natwest’s Cautious Approach Towards Crypto Assets Prompts Another Transfer Limit

Amid the banking sector rout within the United States following the collapse of Silicon Valley Bank (SVB) and its subsidiary, Silicon Valley Bank U.K. Ltd., the Edinburgh-based monetary establishment Natwest is limiting cryptocurrency funds. Natwest, nevertheless, cites cryptocurrency scams within the United Kingdom that price customers £329 million ($399 million) yearly as the rationale for the restrict. The financial institution’s discover additionally signifies that males over the age of 35 are “most at risk” of such scams.

Natwest’s press launch, revealed on Tuesday, particulars that “cryptocurrency investments are often made through legitimate exchange platforms.” The British banks added that these “websites let customers buy, sell or exchange cryptocurrencies for other digital currency or traditional currency.” Natwest additionally emphasizes that, along with males over the age of 35, criminals are utilizing the “cost-of-living crisis” to entice traders with the promise of excessive returns.”

“You should always have sole control of your cryptocurrency wallet and nobody else should have access,” famous Stuart Skinner, head of Natwest’s fraud safety unit. “If you didn’t set the wallet up yourself or can’t access the money then this is likely to be a scam. We have seen an increase in the number of scams using cryptocurrency exchanges and we are acting to protect our customers.”

This just isn’t the primary time Natwest has restricted transfers to cryptocurrency exchanges. The financial institution set a temporary limit in June 2021, and the next month, it specifically blocked funds to Binance, citing the heightened threat of cryptocurrency scams. Natwest has usually categorized cryptocurrency belongings as “high risk” in the past. In April 2021, just before the first limit was imposed, a Natwest risk manager said: “We have no appetite for dealing with customers” who transact with cryptocurrencies.

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