LONDON, Nov 4 (Reuters) – Santander will block UK prospects from sending real-time funds to cryptocurrency exchanges subsequent yr as a part of measures to guard prospects from scams, the financial institution mentioned in an emailed assertion on Friday.
At an unspecified level throughout 2023, the financial institution will introduce a block on all real-time funds to cryptocurrency exchanges made by way of phone banking and in-branch funds, in addition to on-line and cell banking.
From Nov. 15 this yr, the financial institution will be part of different UK retail banks in limiting buyer transfers to cryptocurrency exchanges. Santander prospects will face limits of 1,000 kilos ($1,123) per transaction and three,000 kilos in complete in any rolling 30-day interval, for transfers to crypto exchanges by way of cell and on-line banking.
Clients will nonetheless be capable of obtain payouts from crypto exchanges into their accounts.
Regulators all over the world have warned of the dangers of scams and fraud within the largely unregulated world of crypto buying and selling.
Santander has seen a “giant improve” in UK prospects turning into victims of cryptocurrency fraud in current months, a discover on its web site mentioned.
“Conserving our prospects protected from cryptocurrency scams is a prime precedence,” a Santander (SAN.MC) spokesperson mentioned.
“We intend to additional defend prospects by blocking all sooner funds we determine to cryptocurrency exchanges from Santander accounts – this will likely be applied through the course of 2023.”
Sooner Funds is the infrastructure which facilitates real-time financial institution transfers for many UK financial institution accounts. Pay UK, which owns Sooner Funds, mentioned in emailed feedback that it was “working with regulators and the funds trade to develop and implement higher safety for victims of fraud.”
Santander mentioned it will proceed to dam all transfers to the crypto alternate Binance, a coverage launched in July 2021 following a warning from Britain’s monetary regulator concerning the alternate.
Binance didn’t instantly reply to a request for remark.
Final yr, Britain’s Natwest Group capped the day by day quantity prospects can ship to cryptocurrency exchanges.
($1 = 0.8903 kilos)
Reporting by Elizabeth Howcroft; Modifying by Kirsten Donovan
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