UK bank Santander is set to block real-time payments to crypto exchanges next year.
According to an email to customers first reported by Reuters, the move is intended to protect consumers from scams.
Santander has not said when in 2023 the change will take effect. In the short term, the bank is going to enforce a more limited set of restrictions.
From November 15 onwards, payments to cryptocurrency exchanges using mobile and online banking will be limited to £1,000 per transaction with a total limit of £3,000 in any rolling 30-day period.
The new rules will not impact the ability of customers to make withdrawals.
“In recent months we’ve seen a large increase in UK customers becoming victims of cryptocurrency fraud,” said a Santander spokesperson. “We want to do everything we can to protect our customers and we feel that limiting payments to cryptocurrency exchanges is the best way to make sure your money stays safe.”
Santander will continue to block payments being sent to Binance, in line with the UK Financial Conduct Authority's (FCA) harsh stance on the exchange, which was banned from operating in the UK in 2021 by the watchdog group. The FCA claimed the firm is “not capable of being effectively supervised” and its “complex and high-risk financial products” pose a significant risk to consumers.
Santander to Roll Out Crypto Trading Services in Brazil
Banco Santander S.A., the Brazilian subsidiary of the Spanish Santander Group, is reportedly eyeing the launch of crypto trading for its clients, per local media publication Folha de S. Paulo. Speaking to journalists on Thursday, Santander Brazil CEO Mario Leão reportedly said that the bank hopes to share more information on the matter in the next few months, possibly during the publication of its next quarterly results. "We recognize that it is a market that is here to stay, and it is not neces...
Santander’s policy seems to be in line with the FCA’s cautious recent approach to crypto.
In August 2022, the FCA announced plans to tighten up its rules on crypto advertising significantly, bringing these in line with the regulations governing traditional securities such as stocks and bonds.
Santander isn’t exactly unique among the British High Street banks in taking a prohibitive approach to crypto transfers.
Almost half—47 percent—of the UK’s major banks do not support cryptocurrency according to data from the price comparison site Finder.
Bank of England Wants Stricter Rules for Crypto to Avoid 'Systemic Risk'
The Bank of England today called for better regulation of cryptocurrencies, noting “vulnerabilities” in the market. In the U.K. central bank’s Financial Stability Report published Tuesday, it said that “cryptoasset valuations have fallen sharply,” plunging from a peak of nearly $3 trillion last year to the $883 billion is it now. It said that although this wipeout “did not pose risks to financial stability overall,” tougher laws are needed to protect the wider financial system in the future....
This group is mainly composed of traditional high street banks such as Lloyds, Nationwide, HSBC, and TSB Bank, but also includes some of the newer crop of “challenger banks” such as Starling Bank.
But not all UK banks are pulling back from crypto. Neobank Revolut, which has been operating in the UK since 2015, recently launched a card that allows users to pay in crypto for their goods and services.
Revolut’s “spend from crypto” feature enables users to choose crypto from over 1,000 tokens and enables users to get cash back on their purchases.
