On March 14, 2023, Natwest Group, a UK-based bank, announced new limits on cryptocurrency payments due to the prevalence of crypto scams that cost UK consumers £329 million annually. The bank’s cautious approach towards crypto assets prompts another transfer limit, with a daily limit of £1,000 ($1,215) and a 30-day limit of £5,000 ($6,077).
Rationale for the Limit
According to Natwest, men over the age of 35 are most at risk of cryptocurrency scams, and criminals are taking advantage of the cost-of-living crisis to entice investors with the promise of high returns. In its press release, the bank acknowledged that legitimate exchange platforms are available, but the risks associated with crypto investments are still significant.
Protecting Customers
Stuart Skinner, head of Natwest’s fraud protection unit, emphasized the importance of having sole control of one’s cryptocurrency wallet and that no one else should have access to it. He also warned that if a customer did not set up the wallet themselves or could not access their money, it was likely a scam. The bank’s actions to limit transfers to cryptocurrency exchanges is a measure to protect its customers from fraudulent activities.
Past Actions by Natwest
Natwest has previously imposed limits on transfers to cryptocurrency exchanges, including a temporary limit in June 2021, and the bank specifically blocked payments to Binance the following month, citing the increased risk of cryptocurrency scams. The bank has consistently viewed cryptocurrency assets as high risk, with a Natwest risk manager stating that the bank is not interested in dealing with customers who engage in cryptocurrency transactions.
Conclusion
The new limits on cryptocurrency payments by Natwest Group are a reflection of the bank’s cautious approach towards crypto assets and its commitment to protecting its customers from fraudulent activities. As cryptocurrencies continue to gain mainstream acceptance, financial institutions will have to strike a balance between embracing new technology and safeguarding their customers’ interests.
Disclaimer
The information presented in this Blogpost is solely for educational and informative purposes and should not be misconstrued as investment, financial or legal advice. Cryptocurrencies are a highly unstable and speculative market and their worth is susceptible to substantial fluctuations. Therefore, it is advisable to conduct personal research and seek counsel from qualified experts before making any financial decisions.
