NatWest, one of the UK’s largest and most popular financial institutions, has recently implemented restrictions on its customers’ crypto purchases to mitigate their exposure to volatile assets.
According to a Bloomberg report, the bank has set a daily limit of £1,000 ($1,215) or £5,000 ($6,090) every 30 days on customers’ crypto purchases. This move aims to prevent customers from losing “life-changing sums of money” on crypto investments and scams.
Fraudsters have been using false promises of high returns to lure investors and take advantage of their lack of understanding of crypto and its unpredictability.
This has resulted in an increase in scams running through crypto exchanges, prompting NatWest to impose the restrictions as part of its efforts to protect its customers.
Stuart Skinner, NatWest’s head of fraud protection, has acknowledged that criminals exploit people’s lack of knowledge about crypto to encourage them to transfer money to exchanges set up in the customer’s name by the criminal or victim under duress.
As a response, NatWest has imposed similar restrictions on its customers in June 2021 and blocked transfers to several crypto firms that posed fraud-related harm to its users.
It is essential to note that NatWest is not the only bank that has recently imposed restrictions on customers. HSBC has also banned users from purchasing cryptocurrencies using their credit cards, citing possible risks, while Nationwide bank has imposed a daily limit of £5,000 ($6,090) on all digital asset debit-card purchases.
The move by NatWest and other banks reflects a growing concern over the risks associated with investing in cryptocurrencies.
The digital assets are highly volatile and susceptible to fraud, making them a potential target for criminals looking to exploit unsuspecting investors.
