Citing a large increase in the occurrence of cryptocurrency fraud, Santander released a statement on its website saying it would limit payments to cryptocurrency transactions in the best interests of customers.
Despite the rising craze in crypto-assets, agencies like the Financial Conduct Authority have warned customers against the dangers of investing in crypto, prompting the Spanish-bank Santander to introduce a cap of £1,000 per transaction.
An upper limit of £3,000 in any 30-day period will also be imposed.
The crackdown on crypto payments will come into effect from 15th November 2022 with banks being able to track transfers using mobile and online banking. Incoming payments into a person’s account will be unaffected. The hook of crypto is often the promise by online scams, adverts and partaking firms of high returns on investments and moving forward, Santander plans to tackle the problem altogether by joining files of other banks in stopping all real-time payments to crypto exchanges.
Natwest is among UK banks taking action by blocking electronic payments to Binance, a crypto payments infrastructure, and imposing a complete ban on business customers who accept cryptocurrencies.
CoinDesk published the first report in which Anne Boden, CEO at Starling Bank is quoted as describing the exchanges as “quite dangerous” for customers.
“The industry as a whole must really be alert to the dangers of people using bitcoin and cryptocurrencies to process fraudulent payments,” she said.