Santander bank to ban UK customers from making payments to exchanges

Santander UK, the UK branch of international bank Santander, will limit payments to cryptocurrency exchanges for all of its customers starting this month. The bank plans to take it to the next level next year and completely ban its customers from sending funds to crypto exchanges.

Santander adamant on cryptocurrencies

SantanderUKthe UK arm of Spanish group Santander, will ban all of its customers from making payments from their bank account to cryptocurrency exchanges next year.

The news, noted by our colleagues from Reuters, was announced by email to British customers of the bank on November 4th. According to the email in question, this measure was taken “in order to protect customers against scams”.

The precise date for the implementation of this blocking has not been stipulated, but we know all the same that it will concern all banking services provided by Santander UKincluding those online and on mobile, by telephone or even from its branches.

Nevertheless, from November 15, Santander UK will limit bank transfers for its customers to cryptocurrency exchanges up to 1,000 British pounds per single transaction, or approximately $1,123. The bank will also apply an overall 30-day limit for an amount of 3,000 pounds, or approximately $3,440.

Note that according to the press release, Santander UK customers will continue to be able to make transfers from exchanges to their bank account.

A news that directly echoes a similar decision taken by the bank in July 2021, when the latter had decided to block transfers from its customers to Binance. Here too, the motivation invoked was the protection of its customers.

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The beginning of other measures?

According to the email sent to Santander UK customers, an increasing number of individuals are revealing that they have been victims of various cryptocurrency scams, hence the decision taken earlier this month:

“Over the past few months, we have seen a sharp increase in the number of UK customers falling victim to cryptocurrency fraud. The Financial Conduct Authority (FCA) has warned consumers about the risks of investing in cryptocurrencies, as money held in customers’ cryptocurrency wallets is unlikely to be protected by the Financial Ombudsman Service and Financial Services Compensation Scheme in case of problem. »

Currently, according to data reported by Finder, nearly half of banks in England are opposed to payments to cryptocurrency exchanges, including Metro Bank, First Direct, HSBC, Halifax, TSB Bank and Virgin Money.

The British neo-bank Revolut, however, stands out from its competitorswith an explicitly favorable offer for the purchase and use of cryptocurrencies.

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Source: Reuters, Finder

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