Santander UK Blocks Crypto Exchange Deposits ‘Protect Customers’
Last month, crypto investors cheered the choice of a pro-cryptocurrency prime minister, but local banks continue to oppose the asset class.
Santander is the most recent bank to crack down on crypto in the UK. It was claimed over the weekend that the retail bank intends to prevent real-time payments to cryptocurrency exchanges in 2023.
The bank asserts that it protects consumers against fraud. The crypto embargo will affect Santander clients’ branch, mobile, and online banking.
According to Reuters, bank customers would be allowed to receive cash from cryptocurrency exchanges, but not make deposits.
Santander: Customers’ Safety
According to a note on its website, Santander has “seen a rise in the number of UK clients who have fallen victim to cryptocurrency fraud” in recent months.
According to a bank spokesperson, “keeping our customers safe from cryptocurrency scams is a top priority.” Also, it seems, is the ability to govern what they can do with their own money.
“We intend to further protect customers by blocking all faster payments we identify to cryptocurrency exchanges from Santander accounts – this will be implemented during the course of 2023.”
Faster Payments is a payment mechanism in the United Kingdom that permits almost immediate payments. According to the study, it also seems to be focusing on fraud prevention methods.
In response to warnings from British banking authorities, Santander began preventing crypto transactions last year when it targeted Binance. In 2021, it also stopped transactions to Coinbase, which is completely regulated.
It is not the only bank in the United Kingdom to oppose cryptocurrency exchanges. Last year, TSB took measures to block its clients from transferring to Kraken and Binance, while Natwest Bank said that it would no longer support consumers who want to engage with cryptocurrency exchanges.
The UK’s financial authority, the Financial Conduct Authority, has regularly issued warnings about the crypto industry’s dangers and cons. The government has not yet implemented an official regulatory framework for digital assets, and banks continue to exercise their powers.
UK Crypto Outlook:
The United Kingdom has been mostly opposed to the bitcoin business in recent days, but there are indications that this may soon change.
This is mostly due to the changes at the highest levels and Rishi Sunak’s appointment as prime minister. In the past, he has supported the business and suggested that the United Kingdom must adopt appropriate regulations for cryptocurrency activities.
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