Santander UK limits crypto transactions for its customers
Multinational banking group Santander has imposed a limit on all crypto transactions for its customers in the UK. The mentioned group cryptocurrency fraud warnings from regulators as the reason for its decision.
According to a Nov. 3 announcement, the bank plans to protect its customers from the risks associated with investing in crypto assets, sharing that “money held in customers’ crypto wallets is unlikely to be protected by the Financial Ombudsman Service and Financial Services Compensation”. Plan if something goes wrong.
In an alleged effort to protect its customers from crypto-related risks, Santander UK said it believes the best way to protect its customers is to limit the amount of money they can send to crypto exchanges, claiming that it was “the best way to make sure your money stays safe.
The limit will be enforced from November 15 and customers will be limited to a limit of £1,000 per transaction and a total limit of £3,000 per month. The bank added:
“We will be making further changes to limit or prevent payments to crypto exchanges in the future, but we will always notify you before making these changes”
Despite the newly imposed limits, customers will still be allowed to receive payments from cryptocurrency exchanges to their bank accounts.
Related: UK branch of Santander follows Barclays in banning payments to Binance
The ad was criticized and raised eyebrows among Crypto Twitter members. Bitcoin (BTC) enthusiast, podcaster and author Layah Heilpern said, “Remember they only ban what threatens them. If that’s not your buy signal, I don’t know what is…”
So literally nothing new. UK banks have been slowly blocking/limiting crypto payments for over a year now, I live there, I have multiple banks here
— Brand ⚒️ (@Brand99_) November 3, 2022
Another user, Alesxius, shared, “Since when do they have the power to tell you what you can and can’t do with your own money?”
Since when do they have the power to tell you what you can and cannot do with your own money?
— Alexxius (@alesxius) November 3, 2022
In 2021, Cointelegraph reported that UK banks in Santander had followed in Barclays’ footsteps by banning its customers from sending payments to Binance, citing warnings from the Financial Conduct Authority.