Over the years, there has been a huge growth of investors in the crypto industry. Many parties have picked up on the rapid expansion of cryptocurrencies. Nevertheless, not everyone is interested in hopping on this ever-moving train or, in this case, staying aboard.
Security regarding crypto transactions has been a controversial topic for years. There have been thousands of victims of cryptocurrency fraud in the United Kingdom alone. This is why a major banking firm has decided to protect its users from such fraudulent activities.
Santander restricts cryptocurrency transactions for its users
Santander has announced that, by next year, it would no longer support real-time crypto transactions. Reportedly, this move is meant to protect Santander’s clients from scams. Although the exact time this announcement will be implemented has not been made public, the UK-based bank plans on enforcing a fixed number of restrictions on transactions.
From November 15, all crypto transactions on mobile and online banking platforms will be restricted to ₤1000 ($1,123) per exchange. A total limit of ₤3000 ($3,369) will be allowed for any rolling 30-day timeframe.
Despite the number of restrictions set on crypto transfer, Santander’s customers will still enjoy the same withdrawal capacities they are used to.
FCA frowns against crypto-related activities
According to the FCA, Binance is not capable of being effectively supervised and its complex and high-risk financial products are quite risky. This ban prohibited several financial services providers, like Santander, from allowing their clients to make payments to the exchange platform.
Santander’s recent cautious move comes after the FCA revealed its intentions to significantly restrict crypto advertisements in August 2022. These restrictions are in accordance with the United Kingdom’s regulations concerning traditional securities (stocks and bonds).
UK Banks follow FCA’s lead
Banks in the UK have to follow and adjust their policies to the FCA’s approach. According to reports, about 47% of top banks in the UK do not support cryptocurrency. The most known banks in this category are Lloyds, TSB Bank, Nationwide, and Starling Bank. Despite harsh regulations by the FCA, there are some banks that have opted to stay in the crypto space. A good example of such banks is Neobank Revolut. Launched in 2015, the UK bank recently developed a card that enables its clients to use cryptocurrencies for purchasing products and services. The feature, tagged as spend from crypto, allows customers to select out of 1,000 tokens and get cash returns on their purchases.