UK bank Santander is all set to block real-time payments to crypto exchanges next year

SNEAK PEEK

  • UK bank Santander is all set to block real-time payments to crypto exchanges in order to protect consumers from scams.
  • Payments to the cryptocurrency exchanges utilizing online banking and mobile will be restricted to £1,000 per transaction with a total limitation of £3,000 in a 30-day period.
  • This comes following the UK FCA’s harsh stance on the crypto exchange Binance, which was prohibited from operating in the UK in 2021.

In accordance with an email sent to the customers recently, Santander, a bank in the United Kingdom, has revealed its plans to block real-time payments to crypto exchanges by next year. As revealed in the email, the move was made with the intention of safeguarding consumers from scams. 

It has not been revealed the exact time yet when 2023 the change is going to take effect. However, in the short term, the bank is revealingly going to enforce a more limited set of restrictions. 

Moreover, it should be noted that the payments made to the cryptocurrency exchanges using mobile and online banking are going to be restricted to £1,000 per transaction with a total limit of £3,000 in any rolling 30-day duration. All the customers must keep note that the new rules are not going to lay an impact on the customers’ ability to make withdrawals. 

A Santander spokesperson shared his thoughts on the same and revealed that they had witnessed a significant increase in UK customers becoming the victims of crypto fraud. As a result, they are aimed to do everything that they can in order to protect their customers.

The policy amended by Santander seems aligned with the cautious approach of FCA towards crypto. Back in August this year, the Financial Conduct Authority (FCA) made an announcement regarding its plans to tighten up its regulations on crypto advertising notably. 

It was revealed that Santander would be continuing to block payments that are sent to Binance as it was prohibited from operating in the United Kingdom in 2021. In accordance with the claims made by the FCA, the company is not capable enough of being supervised effectively and gives access to complex and high-risk financial products.