Santander will restrict real-time crypto exchange payments next year.
According to Reuters, the action protects clients against scammers.
Santander has not announced a 2023 implementation date. The bank will loosen limitations temporarily.
From November 15, mobile and online banking payments to cryptocurrency exchanges will be restricted to £1,000 per transaction and £3,000 every 30-day period.
Customers may still withdraw under the new terms.
A Santander official said that bitcoin fraud had increased among UK clients. “We want to protect our customers and think limiting payments to cryptocurrency exchanges is the best way.”
Santander will continue to prohibit payments to Binance, which the FCA banned from operating in the UK in 2021. The FCA said the business “cannot effectively supervise” and that its “complex and high-risk financial products” put customers at danger.
Santander’s crypto policy matches the FCA’s recent caution.
The FCA said in August 2022 that it will strengthen crypto advertising restrictions to match those of equities and bonds.
British high street banks like Santander forbid crypto transfers.
Nearly half of UK’s main banks—47%—don’t support cryptocurrencies, according to pricing comparison site Finder.
“Challenger banks” like Starling Bank join established high street banks like Lloyd’s, Nationwide, HSBC, and TSB Bank.
Not all UK banks are abandoning crypto. Neobank Revolut, based in the UK since 2015, developed a crypto-payment card lately.
Revolut’s “Spend Crypto” function lets customers pick from over 1,000 coins and get cash back.