By Larry Wright
NatWest is one of the largest banking enterprises in the UK. The bank has recently decided to impose a limitation on cryptocurrency users and account holders.
According to the local media outlet, the banks in the UK are changing the transaction limit on cryptocurrency deposits. With the introduction of this new mandate, the users of this bank will only be able to make 1000 pounds worth of cryptocurrency deposits per day.
The officials of the bank have claimed that this limit has been introduced to protect the interest of the customers. With this new limit, the clients of NatWest would not be able to convert a vast amount of their deposit funds into cryptocurrencies.
The National Westminster Bank of the UK, which is the third largest banking enterprise in the region, has introduced these changes to limit the exposure of its clients to cryptocurrencies. It entails that NatWest account holders’ day cryptocurrency purchases are going to reduce.
NatWest Considers Crypto as a Volatile Asset Class
The report about these changes introduced by the NatWest bank has been noted by Bloomberg. The publication has noted that the transfer limit for all account holders has now shrunk to 1000 GBP or $1,215.
With the view of a monthly payment, the crypto purchase limit is now set at only 5000 GBP or $6,090 on the local cryptocurrency exchanges. The officials of the bank have told the media that this new obligation will prevent the account holders from losing a considerable amount of money in a risky asset class such as cryptocurrencies.
The bank has also maintained that it is another way to ensure that people do not lose their life savings through scams. NatWest officials have told media that there have been reports about several crypto scams where investors are lured into investing hefty amounts of savings in hopes of unrealistic returns.
The UK bank noted that scammers are taking advantage of the lack of knowledge and understanding among the account holders and tricking them into moving massive sums of money into various crypto exchanges.
Stuart Skinner is the head of the Fraud protection department at NatWest. Speaking to the media, he claimed that during the last few months, the incidents of crypto scams among their consumers have been increasing.
It is not the first time NatWest has introduced such restrictions on access to cryptocurrencies. In 2021, this bank imposed a limit on the total amount of cryptocurrencies that its users were able to send on cryptocurrency exchanges.
Other banking enterprises in the UK have also taken similar actions to curb the increasing traction in cryptocurrencies. In the same manner, HSBC has put an embargo on its account holders on purchasing cryptocurrencies with their credit cards on account of volatility and risk.