UK Bank Santander will block payments to crypto exchanges
by Arthur · November 6, 2022
British bank Santander is set to block real-time payments to crypto exchanges next year.
According to an email to customers first reported by ReutersThe move is intended to protect consumers from fraud.
Santander has not said when in 2023 the change will come into effect. In the short term, the bank is going to enforce a more limited set of restrictions.
From 15 November onwards, payments to cryptocurrency exchanges using mobile and online banking will be capped at £1,000 per transaction with a total limit of £3,000 in any rolling 30-day period.
The new rules will not affect customers’ ability to make withdrawals.
“In recent months we have seen a large increase in UK customers falling victim to cryptocurrency scams,” a Santander spokesperson said. “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 sent to Binance, in line with the UK Financial Conduct Authority’s (FCA) tough stance on the exchange, which was banned from operating in the UK in 2021 by the watchdog group. The FCA claimed that the firm “is not capable of being effectively supervised” and its “complex and high-risk financial products” pose a significant risk to consumers.
Santander’s policy appears to be in line with the FCA’s cautious recent approach to crypto.
In August 2022, FCA announced plans to significantly tighten its rules on crypto advertising, and bring these in line with the regulations governing traditional securities such as shares and bonds.
Santander is not exactly unique among UK 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.
This group is mainly made up 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 with crypto for their goods and services.
Revolut’s “spend from crypto” feature allows users to choose crypto from over 1,000 tokens and enables users to get cash back on their purchases.
