Multinational banking group Santander has positioned a restrict on all crypto transactions for its customers within the UK. The group cited cryptocurrency fraud warnings from regulators as the explanation behind its choice.
According an announcement on Nov. 3, the financial institution plans to guard its customers from the dangers related to investing in crypto property, sharing that: “money held in customers’ crypto wallets is unlikely to be protected by the Financial Ombudsman Service and Financial Services Compensation Scheme if something goes wrong.”
In an alleged effort to protect its customers from crypto-related dangers, Santander UK stated it believes that the easiest way to guard its shoppers is to restrict the amount of cash they will ship to crypto exchanges, asserting that that is, “the best way to make sure your money stays safe.”
The limitation shall be enforced from Nov. 15, the place customers shall be restricted to a £1,000 restrict per transaction, and a complete restrict of £3,000 a month. The financial institution added:
“We’ll be making more changes to limit or prevent payments to crypto exchanges in the future, though we’ll always let you know before we make these changes”
Despite the newly imposed limitation, customers will nonetheless be allowed to obtain funds from cryptocurrency exchanges of their financial institution accounts.
Related: Santander’s UK arm follows Barclays in banning funds to Binance
The announcement was met with criticism and raised eyebrows from members of the crypto Twitter group. Bitcoin fanatic, podcaster, and creator @LayahHeilpern stated, “Remember, they only ban what threatens them. If this isn’t your signal to buy I don’t know what is…”
So actually nothing new. UK banks have been slowly blocking/limiting crypto funds for over a yr now, I stay there, I’ve a number of banks right here
— Brand ⚒️ (@Brand99_) November 3, 2022
Another consumer by the title of @alesxius shared: “Since when do they have the authority to tell you what you can and can’t do with your own money?”
Since when have they got the authority to inform you what you may and may’t do with your personal cash?
— Alesxius (@alesxius) November 3, 2022
In 2021, Cointelegraph reported that Santander’s U.Ok. banks had adopted in Barclays’ footsteps in banning its customers from sending funds to Binance, citing warnings from the Financial Conduct Authority.