Santander Bank restricts British clients deposits on cryptocurrency exchanges

Multinational banking group Santander has set a limit on crypto transactions for customers from the United Kingdom to protect them from crypto asset scams.

According to Santander, the restrictions will affect the transfer of funds from bank accounts to exchanges for trading cryptocurrencies. The total amount for UK users must not exceed £1,000 ($1,123) per transaction, and the monthly volume of funds transferred to cryptocurrency exchanges must not exceed £3,000 ($3,371). The restriction will come into effect on November 15. However, customers will still be able to withdraw funds from the trading platforms to their bank accounts.

Santander management explained that this decision was made in connection with warnings from regulators about the increasing cases of fraud with digital assets. If there is a threat of losing money stored in cryptocurrency wallets, people will not be able to count on the support of the Financial Ombudsman Service and compensation for their losses. Therefore, Santander believes that these restrictions will be the best way to protect clients from the risks associated with investing in crypto assets.

The actions of the bank caused outrage among members of the cryptocurrency community. Many users are outraged that banks do not have the right to tell people how they should deal with their money. Cryptocurrency podcast host Layah Heilpern statedthat banks prohibit only that which threatens them. She regarded this as a signal to buy cryptocurrencies.

Recall that in July last year, the British division of Santander banned deposits on the Binance cryptocurrency exchange after a warning from the UK Financial Conduct Authority (FCA). Santander followed the example of Barclays bank, which also banned transfers to this site from credit and debit cards.