NatWest Bank Limits Daily Crypto Transfers to Curb Fraud
• NatWest – a retail and commercial bank – is limiting how much money its customers can transfer to digital currency exchanges as a means of preventing fraud.
• Customers of NatWest will no longer be able to transfer more than 1,000 pounds to crypto exchanges or exceed 5,000 pounds per month.
• Binance also recently announced that its customers can no longer engage in deposits or withdrawals centered on the pound sterling.
Natwest Bank Limits Crypto Transfers
NatWest – a retail and commercial bank – is limiting how much money its customers can transfer to digital currency exchanges as a means of preventing fraud. Customers of NatWest will now be unable to transfer more than 1,000 pounds to crypto exchanges, or exceed 5,000 pounds per month. The bank put out a statement claiming there are too many “crypto criminals” out there and it doesn’t want its customers taking too many chances with an unregulated space that’s open to bad behavior.
How To Avoid Fraud
Stuart Skinner – head of fraud protection at NatWest – has offered up tips and tricks for financial players looking to avoid getting defrauded: have sole control of your cryptocurrency wallet and make sure nobody else has access; if you didn’t set the wallet up yourself or cannot access the funds, then this is likely to be a scam. This isn’t the first time NatWest has taken action against crypto or imposed limitations; two years ago in June 2021, they introduced daily caps on crypt transfers which varied depending on individual circumstances.
Binance Halts Pound Sterling Deposits/Withdrawals
Binance recently announced that their customers can no longer engage in deposits or withdrawals centered on the pound sterling – however details regarding how many customers this new rule is likely to affect were not given. Benoit Marzouk – chief executive at Bitcoin Point – believes these measures are too restrictive and won’t do anything when it comes to preventing fraud; instead he suggests banks should focus on educating users about common scams they may fall victim too (such as ‚recovery of your funds‘ or demanding payment prior to fund release).
UK’s Attempt At Regulating Crypto
The announcement from NatWest comes as part of the UK’s attempt at regulating cryptocurrency; so far 330 million pounds have been lost due to crypto scams reported by NatWest alone. It remains unclear whether other banks will follow suit with similar regulations but one thing is certain: although crypto offers great potential for financial players, extreme caution must still be exercised when dealing within this space due to high levels of risk associated with it.
Conclusion
It appears that both Natwest Bank and Binance are making moves towards regulating cryptocurrency by limiting customer’s ability to deposit/withdraw funds from digital currency exchanges in order reduce fraud levels within this largely unregulated space. It remains unclear what other banks might do but for now it’s important for financial players engaging in any sort of crypto activity take extra care when doing so due high levels risk involved with such transactions.