Santander is the most recent bank in the UK to crack down on cryptocurrency. It was revealed over the weekend that the retail bank intends to prohibit real-time payments to cryptocurrency exchanges starting in 2023.
The bank asserts that it shields clients from con artists. For Santander clients, the crypto blockage will affect online, mobile, and in-branch banking.
Reuters reports that bank users will be able to withdraw money from cryptocurrency exchanges but not make deposits.
In recent months, Santander has saw a considerable surge in UK clients become victims of bitcoin fraud, according to a notification on its website.
A bank representative stated that protecting our consumers from cryptocurrency scams is a major responsibility. Controlling what they can do with their own money appears to be important too.
A UK payment mechanism called Faster Payments enables transfers to happen virtually instantly. According to the study, it also seems to be working on fraud prevention techniques.
When Santander began targeting Binance last year in response to warnings from British financial regulators, it began restricting cryptocurrency transactions. In 2021, transfers to Coinbase—which is fully regulated—were likewise stopped.
It is not the only bank with headquarters in the UK to oppose cryptocurrency exchanges. Last year, Natwest Bank declared it wouldn’t service consumers who wished to engage with cryptocurrency exchanges, and TSB took action to stop its customers from transferring to Kraken and Binance.
The Financial Conduct Authority, a UK financial regulator, has frequently issued advisories on the dangers and frauds that exist in the cryptocurrency sector. A formal regulatory framework for digital assets has not yet been implemented in the nation, and the banks are still showing off their strength.