Santander, one of the biggest bank in the UK, will reportedly block real-time payments to crypto exchanges next year as part of its effort to protect consumers from scams.
This was first reported by Reuters in a statement emailed by the bank. For now it is still not known when the rules will be imposed by the bank.
Will Enforce More Restriction
The bank has not said when the change will go into effect in 2023. In the short term, Santander will impose fewer restrictions.
Using mobile banking or online banking, cryptocurrency exchange payments will be limited from November 15 to £1,000 per transaction, up to a total of £3,000 per rolling 30-day period. It will not affect customers’ ability to make withdrawals under the new rules.
“In recent months we’ve seen a large increase in UK customers becoming victims of cryptocurrency fraud,” said a spokesperson from Santander.
“We want to do everything we can to protect our customers and we feel that limiting payments to cryptocurrency exchanges is the best way to make sure your money stays safe,” the spokesperson added.
Continuing to Block Payment Sent to Binance
Binance will continue to be blocked by Santander, following the FCA’s strict stance on the exchange, which was banned by the watchdog group from operating in the UK in 2021.
In its assessment of the firm, the FCA concluded that it is “not capable of being effectively supervised” and that its product portfolio consists of “complex and high-risk financial products”. The FCA’s recent cautious approach to crypto seems to align with Santander’s policy.
FCA announced in August 2022 that it would significantly tighten its regulations governing crypto advertising, aligning their terms with those governing traditional securities like stocks and bonds.
As a British high street bank, Santander isn’t the only one to prohibit crypto transfers. A survey by price comparison site Finder found that almost half of the UK’s major banks don’t support cryptocurrency.
It includes traditional high street banks such as Lloyds, Nationwide, HSBC, and TSB Bank, as well as some of the newer “challenger banks” like Starling Bank.
Despite this, not all UK banks are pulling back from crypto. Neobank Revolut, which has operated in the UK since 2015, recently launched a card that enables users to pay in crypto.