UK Bank Santander to Cease Payments to Crypto Exchanges
On Nov. 3, Spanish financial giant Banco Santander's subsidiary, Santander UK has warned investors that investing in cryptocurrency assets is risky. Cryptocurrency exchanges were also prohibited from using the bank's online and mobile banking services.
All real-time payments made through telephone banking, in-branch payments, online and mobile banking will be blocked in 2023.
The UK retail banks are limiting cryptocurrency transfers from Nov. 15. Transfers to crypto exchanges using Santander's mobile and online banking are limited to 1,000 pounds ($1,120) per transaction and 3,000 ($3,360) pounds in 30 days.
Crypto trading is largely unregulated, which has raised concerns about scams and fraud. Santander also noted on its website that cryptocurrency fraud has become increasingly prevalent among UK customers.?
According to a Santander spokesperson, “In recent months we’ve seen a large increase in UK customers becoming victims of cryptocurrency fraud.”?
“We want to do everything we can to protect our customers and we feel that limiting payments to cryptocurrency exchanges is the best way to make sure your money stays safe.”?
Although Santander UK operates under UK financial laws, other Santander-associated businesses do not. Customers are still able to receive payments from crypto exchanges into their accounts, according to the notice posted on the bank’s web portal. There could, however, be more changes in the future.
Binance, the largest cryptocurrency exchange by trade volume, was also highlighted in the bank's update. Binance transactions have been restricted specifically by the bank, whereby payments cannot be sent to Binance, the bank announced in a statement.
CBW - External Analyst