• NatWest Bank is limiting the daily transfers of its customers to crypto exchanges in order to prevent fraud.
• Customers will no longer be able to transfer more than 1,000 pounds per day or 5,000 pounds per month.
• Benoit Marzouk from Bitcoin Point believes that banks should focus on educating their users about common scams instead of imposing restrictions.
NatWest Bank Limits Daily 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 no longer be able to transfer more than 1,000 pounds to crypto exchanges and cannot exceed 5,000 pounds per month. This announcement comes as crypto exchange Binance is stating that its customers can no longer engage in deposits or withdrawals centered on the pound sterling.
Reason for Limiting Crypto Activity
Stuart Skinner – head of fraud protection at NatWest – claims there are too many “crypto criminals” out there, and it doesn’t want its customers taking too many chances with a space that’s largely unregulated and open to bad behavior. He says that the bank has witnessed a rising number of crypto scams resulting in customers losing close to 330 million pounds.
Previous Restrictions Imposed by NatWest
Two years ago in June 2021, the bank introduced daily caps on crypt transfers; however, limits largely depended on the customer’s individual circumstances meaning things would likely be different for each person. Now, the bank is just ensuring that the rules are the same across the board for all customers regardless how big their accounts are or how much money they have.
Benoit Marzouk’s Opinion
Benoit Marzouk – chief executive at Bitcoin Point, a crypto trading app registered with the Financial Conduct Authority (FCA) – said these measures being taken by NatWest are too restrictive and he doesn’t believe they’ll do anything when it comes to preventing fraud. He commented: Banks should instead focus on educating their users about the most common scams clients are falling victim to typically including ‘recovery of your funds’ or demanding that you pay a withdrawal fee prior to ‘release of funds.‘
UK’s Attempts To Regulate Crypto
The UK is attempting regulate cryptocurrenciesbut this effort may prove difficult due tot he decentralized nature and lack of regulation within this space currently. The ever changing landscape requires diligent monitoring by both government agencies and financial institutions in order ensure safety for consumers while also allowing innovation within this field without compromising security protocols established over time