One of UK’s Largest Banks Restricts Customers’ Transfers to Crypto Exchanges

NatWest, one of the UK’s largest consumer banks, said on Tuesday, according to the Financial Times. cryptocurrency introduced restrictions to prevent consumers transferring funds to trading platforms from losing significant amounts of money.

In addition, online payment provider Paysafe bitcoin The exchange announced that it will terminate Binance’s services to its UK customers.

U.S. officials have repeatedly warned banks about the risks associated with the crypto business this year. But with the banking crisis focused on the US, a few of the UK’s biggest banks are starting to increase the pressure on crypto investors.

NatWest Limits Payments to Cryptocurrency Exchanges

NatWest has imposed a daily limit of £1,000 and a 30-day limit of £5,000 on payments sent to crypto exchanges.

Last month, HSBC announced that it would ban its customers from purchasing cryptocurrencies with credit cards.

A former HSBC employee said: “This looks like the beginning of a coordinated crackdown on crypto from the UK banking industry. “We’ve already seen this strategy take shape in the United States,” he said.

“The longer it takes a U.S. bank to declare that it welcomes crypto deposits, the more likely firms are to choose an overseas location with greater regulatory clarity and easier fiat payment channels,” said Conor Ryder, analyst at Kaiko Research, a data firm.

Earlier this week, HSBC signed a bailout agreement with the acquisition of Silicon Valley Bank’s UK unit for £1, enabling the bank to acquire the subsidiary’s more than 3,000 customers.

*Not investment advice.