NatWest has taken a firm stance on protecting its customers from the risks of cryptocurrency-related fraud.

From now on, the daily limit for transfers to such exchanges will be capped at £1,000, with a monthly limit of £5,000.

According to NatWest’s head of fraud protection, the bank has seen a surge in the number of scams associated with cryptocurrencies, leading to significant financial losses for UK consumers.

Given that most cryptocurrencies are not currently regulated in the UK, NatWest’s decision to limit transfers to exchanges is a proactive step aimed at safeguarding its customers’ financial interests.

The Absence of Proper Frameworks is a Big Problem

While the UK government has set out plans to regulate the crypto industry, the absence of robust regulatory frameworks has created a fertile ground for cybercriminals to exploit unsuspecting consumers.

Therefore, NatWest’s move to limit transfers to cryptocurrency exchanges is a commendable step towards protecting its customers and ensuring that they do not fall victim to fraudulent schemes.

In addition to the daily limits on transfers to crypto exchanges, the head of fraud protection at NatWest, has offered some valuable advice to help customers avoid falling prey to crypto scams.

He stressed the importance of maintaining sole control over one’s cryptocurrency wallet and warned against allowing anyone else to have access to it.

He also cautioned customers to be wary of scams that involved a third party setting up a wallet or blocking access to funds.

NatWest’s move to impose limits on transfers to crypto exchanges is not new, as the bank had previously introduced daily caps on transfers in June 2021.

The bank had some concerns regarding investment frauds as the primary reasons for imposing these restrictions. However, not everyone is convinced that these measures are sufficient in addressing the root cause of the problem.

The CEO of BitcoinPoint, a crypto trading app, believes that NatWest’s restrictions are too rigid and do not adequately address the issue of scams.

According to the CEO, educating customers about the most common scams that they are likely to fall prey to would be a more effective approach for banks.

NatWest Remains Silent about the Move

NatWest’s announcement regarding the restrictions on transfers to cryptocurrency exchanges coincides with a move by Binance to halt deposit and withdrawal of cash in pounds sterling.

Binance, which boasts over 128 million customers worldwide, did not provide any information on the number of clients that will be affected by this decision.

Binance has assured its customers that it is actively working to find a suitable alternative solution for sterling transfers.

While the company has not disclosed the reason behind this move, it is possible that the increasing regulatory scrutiny of the crypto industry in the UK and other parts of the world may have prompted this decision.

The growing concerns around crypto-related fraud, scams, and money laundering have led regulators to impose stricter regulations on the industry.

As such, the move by NatWest and Binance can be viewed as a response to the evolving regulatory landscape in the UK and globally.

It remains to be seen how these developments will impact the broader crypto industry and whether other banks and exchanges will follow suit.

Nonetheless, it is clear that the crypto industry is at a critical juncture, and the actions of market players will shape the industry’s trajectory in the coming years.

The recent decision by Binance to halt sterling transfers marks yet another challenge for the crypto exchange in accessing traditional currencies.

Binance’s move to suspend all dollar bank transfers last month followed increased regulatory scrutiny of the crypto industry in the US.

The suspension was seen as a response to the crackdown by US authorities on crypto-related fraud, money laundering, and other illegal activities.

Final Thoughts

The increasing regulatory pressure on the crypto industry has forced many players to reassess their operations and business models.

With regulators across the globe tightening their grip on the sector, it is clear that the crypto industry must adapt to survive.