Starting from Tuesday, NatWest will enforce a limit on the amount of money customers can transfer to cryptocurrency exchanges. Customers will be allowed to transfer up to £1,000 a day and £5,000 a month to such exchanges to safeguard them from potential frauds. Since most cryptocurrencies are unregulated in the UK, the bank aims to protect customers from “crypto-criminals” who attempt to scam them. The head of fraud protection at NatWest, Stuart Skinner, advises individuals to maintain sole control of their cryptocurrency wallet and not allow access to anyone else to avoid being scammed. The UK government has proposed regulatory plans for the cryptocurrency industry.

NatWest has set daily limits on customers’ transfers to cryptocurrency exchanges to protect them from crypto-related scams. Customers will be allowed to transfer a maximum of £1,000 per day and £5,000 per month to these exchanges. According to NatWest, the move is to protect customers from cryptocurrency-related fraud, which has resulted in UK consumers losing an estimated £329m. In June 2021, the bank introduced daily caps on customers’ transfers to crypto exchanges, citing concerns over investment scams and fraud. However, Benoit Marzouk, CEO of crypto trading app BitcoinPoint, said that the limits were too restrictive and did not address the underlying issue of investment scams.

ABOUT BINANCE

On the same day that NatWest announced it would be limiting the amount of money customers can transfer to cryptocurrency exchanges, Binance, a popular crypto exchange with over 128 million customers, said it was halting deposits and withdrawals in pounds sterling. While Binance did not disclose how many clients would be affected, the company is searching for an alternative solution to facilitate sterling transfers. This move is the latest challenge for Binance as it faces increasing barriers in accessing traditional currencies. Last month, the exchange suspended all dollar bank transfers due to heightened scrutiny of crypto by US regulators.

In June 2021, the UK’s financial regulator, the FCA, warned consumers that Binance, a cryptocurrency exchange with more than 128 million customers, did not have the necessary permission to offer regulated services in the UK. The significance of sterling funding to Binance is unknown as the company’s finances are not publicly disclosed, with most of its business operations, including the Binance.com exchange, largely hidden from public view. Binance recently announced that it would stop people from depositing and withdrawing cash in pounds sterling, without giving details on the number of affected clients. The company is working to find an alternative solution for sterling transfers.

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About the company

NatWest is a major retail and commercial bank in the United Kingdom, operating under the NatWest Group. It was established in 1968 through the merger of National Provincial Bank and Westminster Bank, and it currently serves more than 14 million customers in the UK. NatWest offers a range of banking services, including personal and business accounts, loans, mortgages, credit cards, and insurance. The bank is headquartered in Edinburgh, Scotland, and has over 960 branches and 3,400 cash machines across the UK. NatWest is regulated by the Financial Conduct Authority and the Prudential Regulation Authority.