The UK bank Santander is set to block real-time transfers to crypto exchanges in 2023, Reuters reported. The move is intended to protect customers from crypto fraud and scams.
The Financial Conduct Authority (FCA) has already warned consumers about the risk of investing in crypto assets. This is because the money held in customers’ crypto wallets is unlikely to be protected by the Financial Ombudsman Service and Financial Services Compensation Scheme if something goes wrong.
Though the bank has not said when in 2023 the change will take effect, it has decided to limit payments to cryptocurrency exchanges for now.
This includes payments to crypto exchanges using mobile, and online banking will be limited to £1,000 per transaction with a total limit of £3,000 in any rolling 30-day period, applicable from November 15th. The new rules will not affect the ability of customers to make withdrawals.
Additionally, Santander will also stop payments being sent to Binance as FCA repeatedly raised concerns about the exchange’s complex and high-risk financial products posing a significant risk to consumers. However, consumers can still withdraw any money they have with Binance into their Santander account.
Also Read: UK Lawmakers to hold an Inquiry into NFT Regulation
