NatWest, one of the leading banks in the UK, has imposed a daily limit of £1,000 ($1,377) for cryptocurrency deposits to exchanges as a precautionary measure against fraudulent activities and scams. This decision is in line with the increasing worries of financial institutions and regulators regarding the potential risks associated with cryptocurrencies.
In an effort to safeguard customers from potential fraud and scams associated with cryptocurrencies, the bank has decided to ban customers from using their credit cards to purchase digital currencies. The bank has also stated that it will not accept deposits from cryptocurrency exchanges or any other third-party providers. This move comes as a precautionary measure to protect customers from the inherent risks of investing in cryptocurrencies.
NatWest’s decision to act against cryptocurrencies is the most recent action taken by financial institutions to manage the potential hazards associated with them. Recently, the Financial Conduct Authority (FCA) of the UK cautioned investors regarding the possibility of losing all their money if they invested in cryptocurrencies.
The Financial Stability Oversight Council, which is made up of regulators in the US, warned that if cryptocurrencies were to gain widespread use, they could pose a risk to financial stability.